With Retail Inflation high at 6.85 % RBI Raguram Rajan might not cut Interest rates

With Retail Inflation high at 6.85 % RBI Raguram Rajan might not cut Interest rates

• 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.

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.

Various Market Regulators

Indian Market has many regulators to regulate the Market.

Please find the below list

Securities & Exchange Board of India (SEBI)
The Securities and Exchange Board of India was established on April 12, 1992 in accordance with the provisions of the Securities and Exchange Board of India Act, 1992.

The Preamble of the Securities and Exchange Board of India describes the basic functions of the Securities and Exchange Board of India as "...to protect the interests of investors in securities and to promote the development of, and to regulate the securities market and for matters connected therewith or incidental thereto"
www.sebi.gov.in

Reserve Bank of India (RBI)
The Reserve Bank of India was established on April 1, 1935 in accordance with the provisions of the Reserve Bank of India Act, 1934.

The Preamble of the Reserve Bank of India describes the basic functions of the Reserve Bank as: "...to regulate the issue of Bank Notes and keeping of reserves with a view to securing monetary stability in India and generally to operate the currency and credit system of the country to its advantage."
 www.rbi.org.in

Ministry of Corporate Affairs (MCA)

The Ministry is primarily concerned with administration of the Companies Act, 1956, other allied Acts and rules & regulations framed there-under mainly for regulating the functioning of the corporate sector in accordance with law.
www.mca.gov.in

Forward Markets Commission (FMC) 
Forward Markets Commission (FMC) headquartered at Mumbai, is a regulatory authority which is overseen by the Ministry of Consumer Affairs, Food and Public Distribution, Govt. of India. It is a statutory body set up in 1953 under the Forward Contracts (Regulation) Act, 1952.

www.fmc.gov.in

Ministry of Finance - Department of Economic Affairs (DEA) 
DEA is the nodal agency of the Union Government to formulate and monitor country's economic policies and programmes having a bearing on domestic and international aspects of economic management.

www.finmin.nic.in

Insurance Regulatory and Development Authority (IRDA)
The Insurance Regulatory and Development Authority (IRDA) was constituted as an autonomous body to regulate and develop the insurance industry. The IRDA was incorporated as a statutory body in April, 2000. The key objectives of the IRDA include promotion of competition so as to enhance customer satisfaction through increased consumer choice and lower premiums, while ensuring the financial security of the insurance market.

www.irda.gov.in

When is RBI Policy expected this month?

• May 3 - RBI POLICY,EXPECTATION is that there will be 25pts cut. Anything more or less will move the market.

RBI reduces repo rate

RBI reduce the policy repo rate by 25 basis points from 7.75 per cent to 7.5 per cent with immediate effect;