The RBI in its credit policy review has left all the key interest rates namely, repo, reverse repo and CRR unchanged.
I personally feel thats its quite a defensive step taken by the RBI. When the global scenario is not clear and central banks world over are cutting rates, and there is a decline in Indian corporate performance, RBI is still focussed on inflation.
The fed is expected to cut the rate by 50bps. This will cause a sell off in dollar based asset class and there will be tremendous surge in liquidity pouring into the Emerging Markets. With decline in dollar, exporters and IT companies are going to hit again. As said earlier, i would want to stay away from IT, Textiles and Pharma.
We have heard time and again, that the RBI will try its best to manage the inflows. But with such a huge difference in interest rates between India and USA, i think it will be really difficult. If the inflows continue, I expect a reverse repo rate cut of 25bps soon.
Money from reliance power ipo, future capital group, fed rate cut, february FNO series are all scheduled to hit the markets on FEB 1st. Expect a bomblast on that day
I expect sensex to reach 20k levels soon
Stay invested
I personally feel thats its quite a defensive step taken by the RBI. When the global scenario is not clear and central banks world over are cutting rates, and there is a decline in Indian corporate performance, RBI is still focussed on inflation.
The fed is expected to cut the rate by 50bps. This will cause a sell off in dollar based asset class and there will be tremendous surge in liquidity pouring into the Emerging Markets. With decline in dollar, exporters and IT companies are going to hit again. As said earlier, i would want to stay away from IT, Textiles and Pharma.
We have heard time and again, that the RBI will try its best to manage the inflows. But with such a huge difference in interest rates between India and USA, i think it will be really difficult. If the inflows continue, I expect a reverse repo rate cut of 25bps soon.
Money from reliance power ipo, future capital group, fed rate cut, february FNO series are all scheduled to hit the markets on FEB 1st. Expect a bomblast on that day
I expect sensex to reach 20k levels soon
Stay invested
No comments:
Post a Comment