Yesterday's inflation data put break on RBI's decision to cut repo rate, reverse repo rate. Last week it took bold step by cutting CRR by 75 basis points which has improved liquidity by Rs.48000 cr with banks. CRR cut has enabled more funds for banks. RBI will wait for may be 1-2 months or till monsoon for reduction in interest rate.
Railway budget was bold as in the last 8 years its first time any Railway minister dare to hike passenger freight. But ultimately economics is overshadowed by politics.
There are certain steps are required from FM to curb rising fiscal deficit like reduction in subsidy on diesel & gas, discourage gold import.
Today nifty closed at 5380 level. If govt. fails to take any bold measures to reduce fiscal deficit or due to pressure from allies it rollbacks reforms, it will send negative signals to FIIs. Unless nifty crosses 5700, I think we are still in bear market.
Railway budget was bold as in the last 8 years its first time any Railway minister dare to hike passenger freight. But ultimately economics is overshadowed by politics.
There are certain steps are required from FM to curb rising fiscal deficit like reduction in subsidy on diesel & gas, discourage gold import.
Today nifty closed at 5380 level. If govt. fails to take any bold measures to reduce fiscal deficit or due to pressure from allies it rollbacks reforms, it will send negative signals to FIIs. Unless nifty crosses 5700, I think we are still in bear market.
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