No issues with liquidity; mutual funds thriving now: IDFC MF

The market is expecting easier fiscal and pro-growth policy from the new RBI governor Shaktikanta Das, said Tanvee Gupta Jain, chief India economist at UBS Securities India, adding that it's too early to expect anything from him on prompt corrective action (PCA).

“I am not a banking sector expert but a general sense we are getting on ground is that there could be some relaxation on lending curbs in the offing which would help support growth which is expected to slow down sharply in the December and March quarter as per our estimates,” she said.

The government on Tuesday appointed former finance secretary Shaktikanta Das as the new governor of the Reserve Bank of India (RBI).

Earlier on Tuesday, CNBC-TV18 had reported that Das was being considered for the post that was left vacant after Urjit Patel resigned on December 10, a move that surprised the industry.

Talking about changes in the projects,Jain said, “The only thing I would watch out for is a change in the stance of the policy because inflation numbers are surprising on the downside and we could see the stance get change from calibrated tightening to neutral.”

Suyash Choudhary, head-fixed income at IDFC MF, said that the mutual fund sector is thriving now and there are no issues with regards to liquidity.

He further said that the RBI is looking in the right direction when it comes to mutual funds.

“At sector specific level the financing stress seemed to have passed us which was largely on account of fear that CPs are not getting rolled over, banks have pulled line and therefore there may be some short-term problems in financing – that seems to be over,” he added.

According to him, RBI is right in focusing on headline level liquidity.

Source: CNBC-TV18