Nifty Historical Data: Cut

Wednesday, 2 March 2016

For past 2 days Indian Share market has moved close to 1000 points on hope that RBI will cut interest rates as the Fiscal Deficit it well under control of 4%
But the Fact is Rajan never said he will reduce interest rate if the Fisical Deficit is low.All he said was that RBI mail focus is to contain Inflation.
With Retail Inflation high at 6. 9 % and RBI target of 5 % by March 2017, and 7 Pay Commission kicking in later part of the year, RBI will not be able to contain inflation if he gives a rate cut.
With all this in place, RBI will not could not cut any intrest rate for 2016.
So be cautious in Market and dont get caried away by Blue channel.
Do your own analysis and if it feels right then invest your hard earned money or do a SIP.

Wednesday, 30 September 2015

Raguram Rajan has surprised the Market yesterday with .5 % ratecut.
This Exited the Traders instantly and they moved sensex to 700 point in intraday.
Buy FII quickly saw the opportunity to exit and brought down the Sensex.
With India Inflation to remain around 6 % , the best that RBI Governor has is .75 % as the current RBI Rate is 6.75 % at which it lends to Bank.
Banks keep 2.5 % minimum above this and sell it to us. The cover there expenses and profit in this.
But currently the economy is weak, despite the rate cut it has not exited the FII.
This has caused the exit of FII, Also i think RBI Governor would have sensed that the Fed will raise its interest rate in next meeting. So he want to give some cushion for our economy and market.
So we should carefully watch the Fed meeting next month and see if all going well, then Fed is expected to raise interest rate by .25 %
Also Bihar elections are being closely looked at as it could affect the Political equation in the country as some more big state are going to election next year.
So Its a wait and watch game if you are a trader and Accumulate if you are investor.

Nifty Historical Data