Higher FD rates will not lure equity market investors for now: Analysts

Over the past few years, the return from the stock market has been far higher amid abundant liquidity that poured in from foreign and domestic investors

Stock market investors are unlikely to significantly move their investible surplus to more secure options, such as fixed deposits (FDs), in the near-term even as banks begin to offer higher returns on these instruments, said analysts. 

The hike in rates for FDs by banks follows the recent move by the Reserve Bank of India (RBI) to hike key rates to tame galloping inflation. The repo rate – the rate at which the RBI lends money to commercial banks – now stands at 5.40 per cent. With the latest round of hike by the central bank, the repo rate