Latest News
-
Portfolio Management Services (PMS) vs. Mutual Funds: Detail Analysis -
Ola Cabs Plans $500 Million IPO Amid Electric Vehicle Expansion -
Daily Relative Strength Index (RSI) In A Bullish Mode of This Pharma Stock; Buy For TP Rs 635-685 -
HDFC Bank Q4 Preview: Net Profit Likely To Grow 56% YoY; Credila Stake Sale To Fuel Earnings -
1:10 Split, Rs 299/Sh Dividend: Tata's Steel Stock Up 11% In 30-Days, Better Than Nifty; PL Says Accumulate -
625% Dividend, 1:10 Split, 3 Bonus; FMCG ITC Makes Big Acquisition Announcement; Stock Target Prices In April -
2:1 Bonus Issue: IT Penny Stock Turned; 1,600 Shares Market Lot Size Revised To 4,800 Shares -
FREE, FREE, FREE! 3:1 Bonus: Pharma Stock Hits Back-To-Back Upper Circuits; 500 Shares To Earn Rs 1,69,500 -
1:10 Stock Split: Below Rs 10, Fertilizer Sector Turned Ex-Split; 8,282% Returns In 5 Years -
Rs 17/Share Dividend: Record Date On April 26; Buy The ICICI Group Stock To Be Eligible?
RBI may hold rates steady in policy meet on April 1
The February wholesale price inflation (WPI) figure dropped to 4.68 per cent from 5.05 per cent in January and way below consensus estimates.
February Consumer price Inflation (CPI) food inflation eased to 8.1 per cent against 8.79 per cent on a month-on-month basis (MoM). The drop in inflation was largely on account of a sharp fall in food inflation following a steep reduction in food prices.
Over the last few months the RBI has signalled on a greater focus on CPI inflation reading to target interest rates. The fall in CPI inflation is therefore good news for those looking at policy rate reduction.
The RBI will once again on April 1 meet to decide on policy rates. The central bank has already raised rates thrice since Governor Rajan took over and in his last policy meeting he had clearly hinted that if inflation remains under control, the RBI would have finished with interest rate hikes. The repo rate is now at 8 per cent.
What would be interesting to note at the policy meet would be the tone of the RBI. If it continues to remain hawkish it would not be good for corporate India. In fact, a recent report on Moneycontrol said that if the Reserve Bank (RBI) hikes interest rates any further in the next three to six months, the number of stressed corporates in the BSE 500 will rise in the range of 14 -15 percent, quoting a report by India Ratings suggests.
Clearly, this time the Monetary Policy Review is likely to be a non event. But, one needs to tread with some caution, as the RBI has a tendency to surprise.
GoodReturns.in
