Does automobile sector need more sops, weak demand makes market tough for cement firms; all this and more on Moneycontrol Pro

Finally, some great news! India’s fastest-growing financial subscriptions service, Moneycontrol Pro, is available both on the website and mobile apps. Moneycontrol Pro offers curated markets data, independent equity analysis, insights into investment styles and exclusive trading recommendations. In sum, all the information you need for wealth creation. External benchmarking of lending rates – right intent but wrong approach The Reserve Bank of India’s (RBI) order asking banks to mandatorily link a few of their lending rates to an external benchmark is the wrong approach even if the regulator has the right intent. For better transmission of interest rate changes, structural factors should first be resolved. That’s a tough task and prescribing interest rate formulae is the easy way out. Read here to see what should have been done instead. [caption id=“attachment_6847201” align=“alignleft” width=“380”] Representational image[/caption] Should the government give additional sops for the automobile industry? The Indian automobile industry is down in the dumps, the likes of which it has not seen in two decades. There is pressure on the government to rescue the sector by lowering taxes but there are some who think that a tax cut is not advisable. Read here to see whether the government should give sops or let the industry fend for itself. The cement sector’s staying afloat in a difficult market, two stocks that stand out Cement prices are rising even as input costs are benign but demand conditions have turned weaker in the June quarter. Given near term demand challenges, our research analyst believes companies with strong balance sheets are well-positioned to navigate the current economic downturn. Here are two stocks that seem better poised to ride out these tough times and deliver returns. Diamonds in the Dust | Shares of this CV maker have tanked, can it ride out this rough patch? This commercial vehicle-maker’s shares have fallen by 62 percent from its high levels achieved in April 2018. The company’s performance has been hit by tough market conditions that have clouded the outlook for the entire sector. Eventually, the long -erm potential of the sector should assert itself and see demand reviving. Read here to see why this stock that is trading at reasonable valuations could be the ride you were looking for. Technical picks GAIL: GAIL has seen a bearish Evening Star pattern at the previous minor high. Click here to read how to trade this stock. Muthoot Finance: A breakout of an inverse Head and Shoulder pattern seen here. Read here to see how to trade this stock.