INSUBCONTINENT EXCLUSIVE:
aggressive policy rate cuts to lift economic growth.Asset managers, including BlackRock Inc., Aberdeen Group Plc and Smartsun Capital Pte
have started aligning portfolios on expectations rate cuts will boost bank profits by lowering what they have to pay on deposits, while
and Axis Bank Ltd., which have all surged at least 10% this year, compared with an 8% rise in the benchmark NSE Nifty 50 Index.The Nifty
Bank Index hit a fresh record on July 1 after gaining for four straight months, while the NSE Nifty India Consumption Index has advanced 16%
since its March low, marginally outperforming the broader gauge
Upbeat first-quarter business updates by companies such as pizzamaker Jubilant Foodworks Ltd
and jeweler Kalyan Jewellers India Ltd
signal room for more gains
The broader equity benchmark trades at about 21 times of its one-year forward consensus earnings estimate, compared with about 13 times for
the MSCI Emerging Markets Index, according to data compiled by Bloomberg
Market Is Slowly Losing Its EdgeBut historical data supports the sense of optimism
The last two times the RBI slashed the rates by half-a-percentage point, in April 2012 and September 2015, the banking gauge beat the
benchmark index over the subsequent 12 months
After a 75- basis-points cut during the pandemic in March 2020 both the gauges gave similar gains
