Tuesday 6 June 2017

Sensex extends losses, Nifty breaks 9650; RBI policy eyed


Free Stock Cash Tips click here >> http://www.ripplesadvisory.com/free-trial.php

The RBI, in its upcoming policy review on June 7, 2017, could maintain status quo on policy rates even as the case for rate cut is strengthening.

Three key reasons for same: 

1) Incoming inflation data has been softer than expected, stronger Rupee, softer global commodity prices and fading El Nino risks augur well for the outlook.

2) Growth data (Q4 GDP) too has been softer than expected, with credit growth and capex related indicators exhibiting sustained sluggishness.

3) Externally, Dollar remains quite stable and India’s BoP dynamics has been very comfortable.

Thus, it thinks that economy needs policy support and macroeconomic backdrop offers ample room for same. Rate cuts are likely over next 6-9 months.

No comments:

Post a Comment