In an interview to CNBC-TV18's Latha Venkatesh, Markus Rosgen of Citi Research spoke about global markets as well as foreign interest in Indian markets.
Citi India has upped the Sensex target for FY18 to 32,200. Explaining this upgrade, Surendra Goyal, Director and Head of India Equity Research at Citi Research said that Q4 FY17 earnings have come in slightly ahead of estimates, so this change in target is more of a roll forward.
That demonetisation would impact inflation was expected; however a dip to a two-year low was a surprise. The consumer price index (CPI) used to measure retail inflation touched 3.63 in November as compared to 4.2 percent in October and below the RBI comfort zone of 4-6 percent.
The research report discounts a weak volume outlook for Coal India, reckoning that the UDAY scheme, along with with forward e-auctions, and rationalisation of high-grade prices should help tick up volumes. Morgan Stanley, meanwhile, is underweight on company.
In an interview to CNBC-TV18, Edward L Morse, Global Head of Commodities at Citi Research spoke about the weakness in crude and commodities in general.
Citi Research said retail inflows in mutual funds of USD 6 billion in six months sustainable; cites weak performance of other assets and very low equity ownership.
Under the new rule, families will be allowed to have a second child if one of the parents has no siblings, a change from the current policy where parents can only have a second child if both parents are only children. There is also talk of a blanket two-child policy after 2015.