Mukherjee said there will be very little translation of RBI's recent rate hike
Although not certain about the direction, Udayan Mukherjee of CNBC-TV18's believes the Nifty will break out of the 10,600-11,000 range in the next couple of months.
"At some point either the broader market will move up or the Nifty will break down below 10,600 ... events have come and gone - budget, rate cut, etc ... now the election game is coming and the global game is maturing. So we will have a breakout. My guess is in the next couple of months if not sooner, a breakout of this range and that might well be a fairly decisive breakout," said Mukherjee.
Talking further about the rate cut, he said, "There will be very little translation of this rate hike. Anyway, it's too small, 25 bps (basis points) does not move the needle too much. It may not be passed down because of the very poor deposit growth that we are seeing in the banking system. So given the environment, untranslated 25 bps does not do anything in terms of monetary stimulus."
"When you have a situation when nobody in the market expects a rate cut and the RBI does one, you have to think about whether it was done like the budget as a pre-election gimmick," he added.
