In an interview to CNBC-TV18, Ashok Wadhwa, Group CEO of Ambit Holdings spoke about his reading of the latest RBI credit policy and the road ahead for the Indain economy.
Most experts believe that given the risk of further depreciation in rupee the central bank would avoid cutting repo rate in June, but may provide a cash reserve ratio cut of 25 basis points to improve liquidity.
Evening bulletin brings to you all the key events that made headlines today:
The Nifty was trading flat in the afternoon trade as traders cited cautious stance ahead of the RBI credit policy on May 3. The uncertainty on the political front was also keeping traders in check. The market will remain shut on Wednesday.
RBI credit policy is one of the most talked about events in the stock market. Whenever credit policy announcement approaches, market becomes agog with the shape that the policy announcements will provide to the economy in general and market in particular.
The RBI has acted according to the expectation of the market. But still we saw Rupee and Sensex turning around on the back of hawkish comments made by the RBI.
The 25 basis point repo rate cut announced by RBI has come as a relief to the borrowers both existing as well the potential borrowers.
RBI delivered to expectation on policy rates, and not delivering CRR cut is not relevant to markets with option to release liquidity through Bond/USD purchases.
The main reason why markets and finance ministry are clamouring for the RBI to cut policy rate is the assumption that the move will automatically lead to banks lowering their lending rates.
Uday Kotak, executive vice-chairman and managing director of Kotak Mahindra Bank is hoping for a rate cut between December and January. "Our view is that between now and March we can see 50 bps point repo rate cut in totality," he told reporters.
Jai Bala of cashthechaos.com believes the market can make a fresh high above 5965 if it manages to hold on to the 5810 mark. But if it doesn‘t do that, then one will have to go back to the drawing board and check the medium to longer-term patterns
Prashant Khemka, Co-CEO & CIO- Active Equity at Goldman Sachs AMC has a constructive view on the Indian market at this point in time.
Fund manager Samir Arora of Helios Capital is "deeply disappointed" by the Reserve Bank of India (RBI)'s stance of not cutting interest rates. He believes the RBI ought to have aided sentiment by cutting the repo rate.
The Reserve Bank of India on Tuesday kept repo rates (the rate at which banks borrow from RBI) unchanged at 8%, while reducing cash reserve ratio by 25 basis points to 4.25%. GDP growth forecast for FY13 has been cut to 5.8% from 6.5% and wholesale price â€“based inflation target has been raised to 7.5% from 7.0%.
At the occasion of the CNBC-TV18 India Business Awards 2012, the channel wanted to do something different. Different from the same old panel discussions every other media channel and newspapers tend to do these days.
The stock market has rallied over 400 points, cheering the government decision to cut diesel price by sharp Rs 5/litre and Ben Bernanke‘s decision to pump in USD 40 billion via bond purchases to improve the US economy. However, both the events do not warrant any immediate change in the monetary policy stance by the Reserve Bank of India (RBI).
As the debates continues as to whether or not the RBI must loosen interest rates, CNBC-TV18 spoke to two experts - Manish Wadhawan, HSBC and Samiran Chakrabarty of StanChart, if they were expecting a non-event policy or if they felt the RBI may choose to surprise.
While seasonal monsoon showers are expected to improve in the coming days after good rainfall last week Taimur Baig of Deutsche Bank says there is no need to press the panic button yet.
CNBC-TV18's Lata Venkatesh speaks to Samiran Chakraborty of Standard Chartered Bank, Ajit Ranade of AV Birla Group and Moses Harding of IndusInd Bank to discuss the challenges ahead for the rupee.
Even as India reels from the double whammy of a non-event RBI credit policy meeting and a Fitch downgrade, Taimur Baig, chief economist, India global markets research, Deutsche Bank AG says there is no fear of India being downgraded further anytime soon.
Nischal Maheshwari of Edelweiss Securities tells CNBC-TV18 that the market will be propped up by positive global cues, therefore limiting the impact of the RBI credit policy.
In an interview with CNBC-TV18, former finance secy S Narayan spoke about his reading of the RBI credit policy and the road ahead.
Chairman of the PMEAC C Rangarajan believes the right time to look at interest rates are six weeks from now when the RBI has more information on inflation.
Rajeev Malik, senior economist at CLSA, tells CNBC-TV18 that a repo rate cut would not have helped improve investment sentiment in the country nor fuel economic growth.
Leif Eskesen of HSBC Global Research tells CNBC-TV18 that there isn‘t a strong case for a cut in cash reserve ratio from the Reserve Bank today.