Saturday 5 October 2019

Financial Markets @ October 2019


Season Greetings.

The RBI in its 4 th bi-monthly monetary policy statement for 2019-20 held today, reduced policy rates by 25 basis points, placing the repo rate at 5.15% with immediate effect. These decisions are in consonance with the objective of achieving the medium-term target for Consumer Price Index (CPI) inflation of 4.0% within a band of +/- 2% while supporting growth.
Liquidity conditions, overall remained in surplus in August and September 2019. The path to inflation and interest rates going forward...
RBI is hopeful that several measures announced by the government over the last two months would to revive sentiment and spur domestic demand, especially private consumption. Plus, the impact of monetary policy easing since February 2019 is gradually expected to feed into the real economy and boost demand.

The new lease of life is infused into debt market with ease of payments and accounting which will be taken care of by time, going forward. The Good time to review portfolio and have allocation into short to mid-term Portfolios of AAA rated securities.
Bouncing back of Equity Market (with reduction of Corporate Tax) is no reason why market will not be falling again, yes it will be but certainly not the way the cloud of pessimism was building up. Hence good time to take advantage of slow pace of growth rate (around 5%) of economy to build up position in different equity class depending upon the time frame of investment horizon.

Happy Navratri & Happy Dushera

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