Expert Zone

India’s monetary policy outlook: What’s not to like?

September 29, 2016
A money lender counts Indian rupee currency notes at his shop in Ahmedabad, India, May 6, 2015. REUTERS/Amit Dave/File Photo - RTX2GH3F

A money lender counts Indian rupee notes at his shop in Ahmedabad, May 6, 2015. REUTERS/Amit Dave/File Photo

India Weekahead: Markets will look for global cues

June 5, 2016

(Any opinions expressed here are those of the author and not of Thomson Reuters)

A broker monitors share prices at a brokerage firm in Mumbai

Indian markets continued to consolidate and the Nifty ended the week 0.7 percent higher on the back of strong GDP growth numbers and above normal monsoon forecast. However, weak manufacturing and services data capped gains. Brent crude ended at $48 a barrel for the week while the rupee remained flat. FIIs were net buyers to the tune of $387 million.

India Markets Weekahead: Time to start buying again

March 13, 2016

A screen displaying  Finance Minister Arun Jaitley presenting the budget is seen on a facade of the Bombay Stock Exchange (BSE) building in Mumbai, India, February 29, 2016. REUTERS/Danish Siddiqui

(Any opinions expressed here are those of the author and not of Thomson Reuters)

India Markets Weekahead: Use gains to reshuffle portfolio

March 6, 2016

(Any opinions expressed here are those of the author and not of Thomson Reuters)

A confluence of positive factors, both global and local, led to a sharp rally in Indian stocks. The budget did not have anything positive for markets but it put to rest fears of re-introduction of a long-term capital gains tax which was worrying investors for the past month. From the panic lows of 6,850 on budget day, the Nifty rallied to end the week almost 6.5 percent higher.

India Markets Weekahead: Build your portfolio as markets consolidate

October 4, 2015

(Any opinions expressed here are those of the author and not of Thomson Reuters)

The Nifty closed a percent higher to end the truncated week at 7,951 after threatening to fall below crucial support levels prior to the Reserve Bank of India’s monetary policy review. The bigger-than-expected 50 bps repo rate cut surprised markets, resulting in a robust pull-back.

India Markets Weekahead: Buy into the consolidation

September 13, 2015

(Any opinions expressed here are those of the author and not of Thomson Reuters)

Markets displayed a spirited bounce-back after nearly four weeks of decline with the Nifty closing at 7,789, or 1.7 percent higher, on the back of supportive global cues and several reforms by the government.

No economic case for another rate cut soon

July 30, 2015

(Any opinions expressed here are those of the author and not of Thomson Reuters)

There is no doubt that India’s growth has not picked up in line with expectations. In fact, most activity indicators — whether it’s manufacturing growth, corporate earnings, power generation, passenger vehicle sales, exports growth or non-food credit offtake of commercial banks — have shown increasing weakness in recent months.

What next after RBI cuts rate for third time in 2015?

June 2, 2015

(Any opinions expressed here are those of the author and not of Thomson Reuters)

The Reserve Bank of India (RBI) Governor Raghuram Rajan listens to a question during a news conference, after the bi-monthly monetary policy review, in MumbaiThe Reserve Bank of India (RBI) on Tuesday cut its benchmark repo rate by 25 bps to 7.25 percent while maintaining the cash reserve ratio (CRR) steady at 4 percent and the statutory liquidity ratio (SLR) at 21.5 percent.

Why the RBI’s 25 bps rate cut was too little

January 30, 2015

(Any opinions expressed here are those of the author and not necessarily those of Thomson Reuters)