Mumbai, Jan. 29 Market pundits said rate-sen­sitive sectors could see a neg­ative impact following RBI decision to increase the cash reserve ratio.

"Market has factored in the credit policy announcements and would now look towards third quarter earnings and the budget announcements," said Mr Raamdeo Agrawal, Co-founder and Director, Motilal Oswal Financial Services.

It will be negative for the banks, said Mr Sujan Hajra, Chief Economist, Anand Rathi Financial Services.

"Banks will not be able to raise lending rates in an envi­ronment where credit off­take is already slow and they can also not cut deposit rate because deposit growth is also decelerating. However, it would be positive for the eq­uity markets in the medium term as it is directed towards containing inflation," he added.

Mr Dhanajay Sinha, Strate­gist and Economist, Centrum Broking, said interest rate sensitive sectors such as real estate, automobile and capital goods would take a hit.

Ms Yashika Singh, Head-Economic Analysis, Dun & Bradstreet India, said rate hikes will follow in April 2010, given that the rise in food articles prices could fuel overall inflationary pressures in the form of higher input costs and wage costs, thereby adding to overall costs going forward.