Showing posts with label Rate. Show all posts
Showing posts with label Rate. Show all posts
Tuesday, 15 November 2016
Wednesday, 30 September 2015
RBI .5 percent Rate Cut will help the Market- So is Fed going to raise the Rate?
RBI .5 percent Rate Cut will help the Market-So is Fed going to raise the Rate?
- 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.
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