India's macro finances are getting into good shape.
'Both IIP and CPI inflation numbers are showing a huge disconnect from the leading indicators.'
Sinha says many fund houses not abiding by rules on minimum number of investors, awareness funds
But this might not be the best time to enter these, as probability of further reductions in near future is low
The repo rate has been unchanged since January, when the RBI increased it by a quarter percentage point.
A Reuters poll showed only one out of 51 economists had expected a 50 basis points rate cut.
Indian bond yields may not spike if the government opts to increase spending when it unveils its annual budget in late February.
The RBI cited lower-than-expected inflation, weak crude prices and weak demand, as well as the government's commitment to sticking to a fiscal deficit target as reasons.
Interest rates on bank FDs have started coming down and rates on other fixed-income products will also decline. Investors should lock in to instruments offering higher returns.
RBI's surprise rate cut has revived sentiments of India Inc.
Putting Indian markets on fire, the foreign investors have pumped in over Rs 1-lakh crore of so-called 'hot money' into stocks during 2014 -- taking their cumulative net investments here beyond Rs 10 lakh crore.
The cutback on export credit refinance facility is another step towards a shift away from sector-specific liquidity allocations.