New Delhi, June 2 -- Last week, I wrote that Japanese economic tremors could impact domestic market sentiments even though the US downgrade by Moody's would not. That hypothesis was validated by the markets as the Nifty slipped mildly, even as the Bank Nifty gained marginally. The Reserve Bank of India (RBI) will announce its decision on interest rates on Friday, keeping banking stocks buoyant. Bankers expect a rate cut after the policy meeting. Do remember that the banking and financial sector stocks command a weightage of 37.74% in the Nifty 50. This sector is single-handedly responsible for swaying the broader markets with itself. Which is why it is known as the "swing sector" by systems traders.
Should the RBI cut coupon rates by up to...