The RBI expects inflation in 2015 to hover around 6 per cent -- its target for January 2016 -- and sees risks to the target evenly balanced.
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Bank stocks have underperformed in the second quarter of FY'14 with the BSE Bankex declining 18 per cent compared to fall of 1 per cent in the BSE 30-stock index, Sensex, during this period.
If rate cuts are fully transmitted, and RBI continues to cut rates in 2016, and earnings growth picks up as well, current valuations may be justified. Otherwise, equity will remain over-valued, says Devangshu Datta.
RBI Governor has been under pressure from Finance Ministry.
A monsoon deficit is likely to affect the agriculture output, which could have an impact on the food inflation
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After a string of extremely low and even negative monthly numbers, the industrial sector grew by 2.6 per cent year on year, far exceeding expectations.
'As the growth momentum reverses benefiting from re-monetisation, it will be accompanied by a rise in inflation.'
Exports dropped 3.1 per cent in June from a year earlier, the first decline since January last year while imports went down 0.7 per cent, General Administration of Customs said on Wednesday.
RBI data show one-fifth of all the infrastructure loans are stressed and the share of such loans in overall stressed assets is nearly a third.
Total debt for listed Indian companies excluding financials fell only 4 per cent to $368 billion in the year ended in March 2015.
After fighting inflation for more than two years, Reserve Bank of India (RBI) Governor Duvvuri Subbarao finally managed to bring it below the five per cent level - the tolerance level of the central bank - in FY14.
Reserve Bank of India (RBI) Governor Raghuram Rajan has set himself a target of lowering consumer inflation and is even ready to raise rates to achieve it, risking friction with the new government, if he is seen as overstepping.
Infrastructure and inflation targeting are expected to be top priorities for the new Reserve Bank of India governor, says A V Rajwade.
The central bank had nudged banks to cut lending rates.
As a result, the forecast of eight per cent retail inflation by January next year looks achievable.
India's aggregate NPA as a percentage of GDP is far lower than that in Italy, Greece.
Investors sought to book profits at attractive valuations after recent run up in last few trading sessions.
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The agency has kept its FY15 growth forecast unchanged at 5.6 per cent.
A smartly executed reform-recap will be the best booster for the economy, says Ajay Chhibber.
The final and most significant reset in the relations between the government and the RBI is the manner in which the process of appointing the governor and deputy governors of the central bank has been changed.
Barry Eichengreen, professor of economics and political science, University of California, Berkeley, analyzes the transparency of the Reserve Bank of India, the growth rate of the Indian economy and why he feels globalisation can never be rolled back.
In a recent article, Rajan has ridiculed critics of the exchange rate policy.
Market breadth depicted gains with 1,476 advances over 1,403 declines on the BSE. 140 stocks remained unchanged.
RBI Governor Raghuram Rajan is regarded as credible by global financiers.
The broader markets ended in line with the benchmark indices- BSE Midcap and Smallcap indices ended higher by 1.3% and 0.9% each.
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Economy still faces many challenges and 'relatively big' downward pressures such as increasing difficulties for businesses and the emergence of economic risks, the Central Economic Work Conference said.
Also keenly watching inflation numbers, with wholesale inflation data expected today
'A broad-based revival of private sector investment was likely in 2018-19 after businesses had successfully made the switch to the GST.'
Lower inflation, FCNR(B) outflows likely to influence central bank decision
Financials declined amid profit taking while energy shares fell after the government hiked excise duty on transport fuels.
There are glaring anomalies with Indian data and that could lead to wrong policy prescriptions.
PSU bank shares were the top gainers on hopes of a rate by the RBI on easing consumer inflation
Financials ended mixed despite the status-quo on key rates by the RBI. SBI, ICICI Bank and Axis Bank ended up 0.4-2.5% each.
The consumer price index has been in double digits for much of the past year, and was 9.8 per cent in September.
Banks might hold on to lending rates for the time being.
Analysts expect RBI to restore 100-bp corridor in Tuesday's policy review.
CPI inflation has declined by almost a percentage point from July, from close to eight per cent to just above seven per cent.
A rate cut will bring positive sentiment around the Budget.
The second half of June could be driven more or less by technical factors triggered by news flow from Greece, the US Federal Reserve and the monsoon. The technical picture seems bearish as of now, says Devangshu Datta.
Sensex may remain under pressure this week due to weak global factors.
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