RE:RE:Regd. Share prices of steel stocks
by aoneall on Apr 28, 2008 01:35 PM Permalink
If RBI increases REPO rate, it simply means the cost of money available to companies to borrow, will go up. It will affect their profitability. In the long run, the companies may develop more efficient methods of production and thus they can offset such losses but in near term, they will have to bear the loss in the profitability. Also, share market in near terms is driven more by sentiments rather than facts, therefore it is very likely that prices of shares may come down.
