RBI Policy | Stocks and Commodities

P R Sundar, Aditya Trading Solutions

September 19, 2013
Time: 7 pm

RBI Policy:

1. FOMC meeting is over.
2. All emerging markets are on fire, both currency and stock markets.
3. Indonesia market was up nearly by 5%, best performance in Asia.
4. Nifty's absolute gain is second highest after May 2009.
5. FIIs bought for Rs 3500 plus crores in cash market.
6. Now it is the time for RBI action.
7. What can be expected from RBI?
8. Given the high inflation, no rate cut is expected.
9. But a lot of other things can be done.

• The interest on banks borrowing from RBI was increased from 8.25% to 10.25% by Subbha Rao. That can be reduced.
• Banks CRR compliance was increased from 90% to 99% by Subbha Rao. That can be reversed.
• 'Funding for lending' where RBI may refinance the consumer loan for real estate and auto loans for banks at one two two percent lower rate.
• RBI Governer may give road map for listing of Govt. bonds which will attract 30 to 40 billion dollars.
• All the above points have been talked about by media, but who knows, Raghu Ram can come out with something new. Nobody guessed his first announcement that shook the markets, especially banking stocks.

All the best to those who are long in Banking stocks.