D-Street betting on rate cut; banking stocks in vogue: Ajay Bagga

In an interview with ET Now, market expert Ajay Bagga shares his view on whether we can see a rate cut by the Reserve Bank of India in its forthcoming policy review.

ET Now: Take us through the overall trade setup right now because clearly all eyes after the US Fed decision seem to be on the RBI. It is going to be a fairly tough decision, but consensus on the Street is that now the doors have opened up for further rate cuts. What is your call?

Ajay Bagga: Clearly, it is the biggest factor, which is driving the market at present. You are seeing building up of positions in the banking space in the anticipation of a rate cut. I would say Tuesday's meeting of the RBI governor with the finance minister would be keenly watched. Let us see what are the announcements posts the meet. Otherwise by September 29, there is a very strong indication and expectation of a rate cut in the market.