Shares of rate-sensitive sectors — banking and finance, automobiles and realty — may remain in focus, as retail inflation rose sharply to 7.35 per cent in December 2019 from 5.54 per cent in November.
Analysts fear the declining trend in interest rates may be over for the short term and expect the RBI to either pause or increase the rates in the next few meetings. Most expect the headline inflation to stay above 5 per cent in CY-2020, leaving little elbow room for the central bank