Six event risks BoA Merrill Lynch sees for Indian equities

Wed, Apr 10, 2013 at 16:56

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#1. Lending rate cuts in April-May


BoA ML expects a 25 basis point lending rate cut in April-May with the onset of the slack industrial season. The RBI OMO and/or CRR cuts are pushing up deposit growth to 14 percent levels. At the same time, it says, high lending rates will likely continue to drag down loan demand. The resultant improved bank liquidity should help pull down lending rates.

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