As the Reserve Bank maintained a status quo on key policy rates, analysts said higher demand due to supply constraints will not allow inflation to ease as quickly as anticipated and the apex bank may be forced to increase rates once more by the year-end.
The Indian government and RBI must keep foreign equity investors happy and avoid crushing growth expectations, notes Akash Prakash.
Mr Prabhu has a big challenge ahead in implementing trade reforms to regain the lost export momentum, says Jayanta Roy.
The country has a long way to go before it claims to have arrived, he said.
Indian economy is set for a 'goldilocks' period -- used to describe a timeframe of high growth and low inflation -- while it can become Asia's fastest growing economy in 2016, Japanese financial major Nomura said.
Investors are keenly focused on new govt's first full-year Budget.
With the 'busy credit season' which witnesses a spurt in loan demand going up, it would be good to lower the rates ahead of it
Inflation is down and there's every chance that crude prices will be subdued through the next year.
Economist Dale W Jorgenson declares that India is doing "very, very well" and forecasts that India might continue to outrun world economies, including China over the next many years.
For the first time in seven years the prime minister finds himself at his most vulnerable, observes Virendra Kapoor.
Rupee, bonds may see knee-jerk reaction, as Urjit Patel is considered an inflation warrior
On reforms in pipeline, she said the government is for universal right to minimum wages and wants to remove regional disparity through a national floor wage.
Morgan Stanley expects RBI to cut rates sharply rather than "dribble down".
'The reform agenda is progressing in the right direction'.
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.
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Improved investor sentiment is expected to drive the economy forward in the coming quarters.
At the BSE, 1,552 stocks advanced, while 1,419 declined and 118 remained unchanged.
Foreign brokerage HSBC has said it expects the rupee to trade at 60-levels by December against the dollar even though risks on the domestic unit from both external and domestic fronts have increased.
The partially convertible rupee closed at 61.31/32 per dollar, unchanged from its Tuesday close.
'Every few days, I wake up with a sense of restlessness that time is running out'... 'We have created a due process for stressed assets to resolve, but there is no concrete plan in place for public sector bank balance sheets,' says RBI Deputy Governor Viral Acharya.
Sensex to end this year at 27,500 and reach 29,000 by mid 2016.
The central bank will come out with fresh set of guidelines for companies applying for on-tap bank licence
'MFs have a combined exposure of Rs 3.2 lakh crore to NBFCs, out of which Rs 1.1 lakh crore matures by September 2019.'
FY17 GDP growth faces cash crunch heat
Domestic investors have managed very well to minimise the impact caused by relentless selling by foreign portfolio investors.
The convertibility is RBI Governor's 'next big ambitious goal'.
The government could carry out the demonetisation exercise over periodic intervals along with its surprise element, says Soumya Kanti Ghosh.
The recent agreement between the RBI and the Centre marks a significant step forward toward financial inclusion.
The government's Rs 20.97 lakh crore COVID-19 package lacks in addressing the immediate concerns of the economy as the actual fiscal impact of the additional stimulus is only about 1 per cent of the GDP as opposed to the claim of 10 per cent, Fitch Solutions said on Tuesday. Prime Minister Narendra Modi on May 12 announced a stimulus package of Rs 20 lakh crore, or nearly 10 per cent of GDP, to deal with the economic fallout of COVID-19. The contents of the package were broad-based and announced in five tranches.
'Clearly, the depositors of cooperative banks need the maximum protection.'
The choice clearly is between prompt corrective action and slow but sure destruction, says Tamal Bandyopadhyay.
He said that land, a state subject, was a big destination of black money while reform in political funding was also important
The sad truth is that the debt-to-GDP ratio will shoot up close to 90 per cent in the coming year, and the fiscal deficit glide path does not promise to reduce it substantially any time soon, predicts Mihir S Sharma.
The interest money which is not claimed by people due to religious obligations is kept in suspended bank accounts.
RBI lowered economic growth for the current fiscal to 6.9 per cent from the previously projected 7.1 per cent, but saw it bouncing back in a big way to 7.4 per cent in 2017-18.
He said cheap valuations, improving sentiment and the ongoing reform momentum coupled with increased transparency due to the internet are driving investors to the Dalal Street.
Markets are poised for excellent growth, provided reforms continue to roll
The trio, 'twin shocks' of demonetisation and GST, 'twin balance sheet' problem that has been weakening India's banking system and the 'twin deficit' problem will continue to challenge economic management and performance in the year ahead, says Shankar Acharya.
The panel was set up to suggest ways to reform India's monetary policy.
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