Analysts say the changes made by banks on credit cards this year reflect the new reality after the sharp 250-basis point increase in interest rates by the Reserve Bank of India (RBI) since May 2022 to restrain inflation. One basis point is 0.01 percentage point. ET analysed credit card rewards and charges for HDFC Bank, SBI Card and Axis Bank, which together make up more than 50% of the outstanding cards in the market.
Sanjiv Bhasin, Director at IIFL Securities, recommends considering oil marketing companies, as well as TCS, which he believes will continue to perform well despite mixed numbers and a lower-than-expected buyback. Bhasin is bullish on Zomato and the fintech space, and suggests considering cement companies like ACC, Ambuja, UltraTech, and Dalmia Bharat. He also praises Nestle for its bullish outlook on India.