RBI Not Exhausted With Monetary Policies

RBI Not Exhausted With Monetary Policies :

Reserve Bank of India is continuing with sharp monetary policies, to ward off COVID-19 trauma.

RBI is looking a long term view and the measures will be winded-off swiftly. 

The banking is sound & stable, but bank need to be invested greatly in sunrise sectors.

Erosion of capital and the balance sheet of the banks will not be rosy. 

RBI also appreciated the banking officers to work hard during this epidemic.

 

 

Fiscal deficit, debt - Gross Domestic Product, Current Account Deficit are better now. 

Repo rate is 4% and Reverse Repo is 3.35% respectively. 

Loan payment moratorium and interest payment which is deferred, also into consideration.

Stock Market will be happy, not for long.

 

Market is going to go down, Reasons are many, But main is one?

Due to monetary policies presented by Reserve Bank Of India, the market was expecting some thing from the Governor, like cut in Bank Rate, SLR, CRR, etc. But nothing has come out, as they were expecting something from the Federal Reserve, to come out. This is not true, right now. 

 

Market want more business to come in. Hotels are getting opened, Railway will start running from a few days from now. Economy is expecting to speed up, but where is the incentive to make it speed!

 

Right now, as the Bank Repo rate and Reverse Repo Rate are 4% and 3.3% respectively, it's better for RBI to cut the Cash Reserve Ratio which will bring in at least Rs. 16,000 crore - Rs. 32,000 crore in the market. Nothing happened. They took a wait and watch stand, which is not good for the market, businessman and the market. 

So, next week we are expecting a mass decline in share prices as Sensex and Nifty will be on the correction mode. Already, after Corona, the market has ballooned almost 30% on a stretch, which will try to release the steam first,  and take the next turn. 

Apart, why the market has moved to 30% is that Foreign Direct Investors and Foreign Institutional Investors are playing with P-Notes, which right now SEBI had already put a brake. Market will be looking for fresh impetus, which is not there. So, we see the tumble down effect of Mumbai Stock Market, in the week to come.

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Demuxs Internationale, [Sure Tips With Good Research team]

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27/08/2020 - Sold Prestige Estate For Rs. 262.00

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