The sensex was up by 376 points going to 26154 and Nifty was up by 105 points going to 7948. The European and Asian Markets were up. The FII s have been selling so Markets have been in trading range with a downward bias for long. But now before the rate cut markets have been giving a chance to the Bulls and Bears. Yesterday ie the 29th of September Tuesday the RBI has cut the rates ie the repo rate by 50 basis points. That is why the Markets have gone up, loans for vehicles and housing will be cheap that is why housing stocks went up. But, it is not worth buying housing stocks for investment as there is an huge housing inventory which has not been sold.
This cut in rates might give a boost for housing stocks in the short run but certainly not for investments. The general tendency with a rate cut is lending rates will come down. With a cut in lending rates manufacturing might do well as loans are available for plant and machinery.After the rate cuts markets have formed a bullish bias and the FIIs which have been selling might start re entering . It is better to concentrate on stocks rather than the market. HAPPY TRADING AND INVESTING.
