For India, this opens up a potential silver lining. A Fed easing cycle could support flows into Indian bonds, offer some near-term relief for the rupee, and help ease imported inflation pressures.
A review of data from 12 leading PSU banks reveals that most lenders have reported their lowest or near-lowest slippage level in over a year, with some hitting multi-year lows.
It said the fiscal slippage will happen despite higher tax and non-tax revenue collections, and also added that these will be more than sufficient to offset the lower-than-budgeted divestment proceeds.
Mitul Kotecha, global head of currency strategy, Credit Agricole says the rupee could end up around the 60-61 level in the matter of days or weeks. He feels once the rupee touches 60-61 against the USD, it would look like a pretty cheap currency to hold. Overall my models would suggest that it is already looking undervalued.
Despite UCO Bank disappointing the street on Tuesday with its fourth quarter result, S Chandrasekharan, ED of the Bank sees strong recoveries in this quarter.
Pratip Chaudhuri, chairman of SBI is hopeful for Q4 earnings and considers it to be the best quarter due to clearance of government dues. "Q4 should be a very good quarter regarding the non-performing assets (NPA) and the recovery process," he adds in an interview to CNBC-TV18.