An expected drop in inflation, positive real rates and favourable external balances are some reasons that signal a pivot by the Reserve Bank of India
A Citibank analysis of global financial conditions shows Asian financial markets have tightened less than in the US and most Asian currencies have gained ground against the US dollar
The Federal Reserve, while announcing the rate hike, said the recent developments in the banking sector "are likely to result in tighter credit conditions for households and businesses and to weigh on economic activity, hiring, and inflation".
The analysts see a low-growth, high-inflation scenario ahead
Macro set up warrants investors to consider selecting defensives to navigate.
While inflation is high in India, it is not at an alarming level to warrant such steep normalisation
Bruce Kasman, JPMorgan Fed's forward guidance on rates is of more importance. The Fed has been successfully guiding to a start of rate hike cycle by end of 2015.
Speaking to CNBC-TV18 in an exclusive interview, Rajeev Malik of CLSA says that the RBI move will be very keenly watched and is very important this time around. "The EGoM decision on LPG is also being tracked closely,” he says.
K Ramanathan, chief investment officer of ING Investment Management India joins CNBC-TV18 to tell what he has made of both the earnings season as well as the trends in the market.
PN Vijay, Portfolio Manager, tells CNBC-TV18 that the market is most likely to breakout of the tight range it is stuck in, on the positive side.
Indian lenders have suggested to the Reserve Bank of India (RBI) to pause its rate hike cycle and also urged for a clear forward looking statement on interest rates at the policy review next week, said Indian Banks' Association (IBA) Chief Executive K. Ramakrishnan on Monday.
The Reserve Bank is expected to resume its rate hike cycle at its quarterly monetary policy review next week as soaring inflation stalks Asia's third-largest economy.