According to Nomura, downside risks to the growth outlook have materialised with financial conditions tightening much more than anticipated.
While risks arising from high inflation and fiscal slippage have receded, concerns about growth and current account deficit have worsened, which may pull down GDP growth to about 6.2 percent next fiscal, says a Barclays report.
The Indian market has been consolidating for the last six-seven weeks. In an interview to CNBC-TV18, Raamdeo Agrawal, director and co founder of Motilal Oswal Financial Services says the valuations are attractive.
India's current account deficit for the April-June quarter came in at USD16.4 billion, lower than another USD 17.4 billion in the first quarter of last year as well as lower than the USD 21.7 billion in the previous quarter, (Q4FY12).
The message seems to be loud and clear; all ex-Central Bankers have joined the Governor (of RBI) to send clear signals to the Government to fix issues related to fiscal deficit and Balance of Payment to get RBI into growth supportive rescue act through accommodative monetary policy.
Rupee looks set for hard landing with target at 56-57, says Moses Harding, Head - ALCO and Economic & Market Research, IndusInd Bank.
It was a difficult March series and there are more confusing times ahead, says Raamdeo Agrawal, Director & Co Founder, Motilal Oswal Financial Services.
Anant Narayan, MD- Regional Head of fixed Income & Currency Trading - South Asia, Standard Chartered Bank, in an interview on CNBC-TV18 says the rupee has shown a reasonable amount of spirit to the dollar, even though the medium-term fundamentals are negative for our currency.