Category: Economy, Markets and Macro Views

The Reserve Bank of India (RBI) often likes to spring a small surprise, and today’s meeting was no exception. Contrary to market expectations, the RBI raised the CRR by 75bps v/s expectations of 50bps. RBI has raised its growth estimate for FY10 from
6% with an upward bias, to 7.5%.

The RBI raised its inflation projection, it has stated that inflation expectations are on the rise and warned of further upside risks emanating from: oil, below average monsoons in 2010, and capital flows. RBI also pointed out that large fiscal deficit is a far bigger risk to both short-term and medium-term. (more…)

In a somewhat very surprising move, Credit Suisse Research has sent tremors with FIIs and other P-Note account holders by downgrading India Directly to Underweight from Overweight.

Credit Suisse in a research note said that on P/BV versus ROE valuation model, (more…)

Ahead of RBI’s monetary policy on Friday, 29 Jan, the domestic Macro scenario has improved with industrial production at 10-11% growth, inflation with the Dec reading crossing the RBI’s Mar 10 target of 6.5% and Loan growth returning to the double-digit range.

The street expects the RBI to begin normalizing rates with a 25-50bp increase in the CRR and 25bp increase in repo and reverse repo rates. Surprise could also be a withdrawal/roll-back of some of the liquidity injection measures taken during the crisis. (more…)

Ahead of RBI’s monetary policy on Friday, 29 Jan, the domestic Macro scenario has improved with industrial production at 10-11% growth, inflation with the Dec reading crossing the RBI’s Mar 10 target of 6.5% and Loan growth returning to the double-digit range.

The street expects the RBI to begin normalizing rates with a (more…)

The markets is no mood to correct and Bulls have taken total control of the same. Here is Nomura’s Expectations from Indian Equities for 2010.

Growth: The 2H FY09 (fiscal year-ending 31 March, 2009) saw demand reeled in. Expect better growth in FY11F, underpinned by a turn in the investment cycle. Firm signs of a demand recovery are evident. Capacity shortages that had been masked by absent demand are now back to the fore, creating conditions for a capex revival. (more…)