Indian equity market will be closely watching the event of RBI scheduled on 6th December. Indian market is looking for some triggers to continue it’s momentum and RBI policy can work as a catalyst for it. Market is poised to move big on either side because of some power pack events lined up in December.
Events starts with RBI policy then Gujrat and Himachal election results then FED meeting. So all these events will be closely watched and market will definitely take a quo from it.
If we talk about expectation from RBI policy, it is expected that there will be no any change in rate and commentary is expected to remain hawkish. Ease is GDP numbers which previously was 5.7 % jumped to 6.3% reduced pressure on RBI to reduce the rates.
RBI is more focused on controlling the inflation after the implementation of GST. As it was expected that after implementation inflation may rise. Merging of different GST rates also reduced inflation risk but it is still intact.
Jimeet Modi, founder & CEO of Samco Securities Ltd, said that the markets are likely to remain volatile for the week ahead as fresh triggers looks weak going forward. “The markets will be anxious to see the outcome of Gujarat polls,” he added.
Credit rating firm ICRA has said RBI is likely to keep the key policy rate unchanged at 6 per cent as it expects retail inflation to firm up in the coming months.
It said the (MPC) would leave the repo rate unchanged at 6 per cent “in a non-unanimous decision in the December 2017 policy review, given the expectation of a further rise in the CPI inflation in the coming months”.
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