If you want to see our currency improve, then lower the interest rates, improve the growth and the rupee will rise, says Surjit S Bhalla.
If you want to see our currency improve, then lower the interest rates, improve the growth and the rupee will rise, says Surjit S Bhalla.
The government move on wheat and cement is irrelevant
Surjit Bhalla of Oxus Investments says that he is worried about the equity markets as despite good earnings, stocks are refusing to go up and investors are using rallies to sell.
Economists have asked Finance Minister Arun Jaitley to lower interest rate, rationalise subsidies, remove all cess and surcharge, do away with the retrospective tax amendments and scrap dividend distribution tax to revive investment cycle and promote growth.
Surjit Bhalla believes that RBI is the only central bank in the world that formed its monetary policy on the basis of the current account deficit. He also feels that the Chidambaram proposed women's bank in Budget to impress Sonia Gandhi.
In cutting interest rates and giving a boost to the government's efforts to revive growth, RBI governor Raghuram Rajan displayed the pragmatism and flexibility familiar to those who work with him.
A ban on futures would lower liquidity and make the markets more volatile. In any case, the recent US experience shows such bans don't stop markets from falling.
