Credit policy important for infrastructure and banking stocks: Deven Choksey

Deven Choksey, MD, KR Choksey Securities in an interview with ET Now talks about RBI's credit policy.

How much of a catalyst do you think could be this year's credit policy?

More than the action at this point of time the beginning of the financial year, it would be the tone of RBI which would matter a lot because if they end up suggesting that they want to bring down the rate of interest over next 4 to 6 quarters by 1% to 1.5%, then in such kind of a situation, the banking stocks particularly would find lot of favour.

This is because of the yield impact coming positively onto the bottom line of the companies. So from that point of view, this credit policy is going to be important.

Secondly, from the point of view of infrastructure spending, the tone of RBI would be more important because if rates come down, infrastructure projects would see some light of the day. This would mean kick-starting of spending in the economy which would ultimately have the benefit coming back to the retail borrowers.

We will have to wait and see how RBI systematically brings down the rate of interest. Rates of interest have peaked out.