Foreign fund flows into and out of the domestic sharemarket will continue to be key for the rupee's fortunes.
RBI will be cautious easing rates further given oil price uncertainties
RBI Governor Raghuram Rajan on Friday said keeping inflation low is the key task for sustainable economic growth of the country.
Across the board, demand would appear to be slacker than it should be if we are headed for a healthy recovery.
India's gross domestic product growth rate slipped to 7%.
Many fear that in practice if banks make their customers pay to hold their money, it might lead to a situation where consumers hold on to cash.
'So far, the government has sanctioned more than Rs 300 billion as GST refunds,' Ansh Bhargava and Aditya Singhania point out.
Economy to grow 6.5% in 2016 on better macro conditions, says Mckinsey.
The RBI cut the rate several times last year to reduce it by 125 basis points to the current 6.75 percent.
Prices are likely to rise further as demand grows in coming months due to festivals
The change in the baseline for IIP and WPI, currently at 2004-05, is expected to bring in more accuracy in mapping the level of economic activity and calculating other numbers like national accounts.
Slowing inflation prompted the RBI to cut the policy repurchase rate last month by 25 basis points to 6.50 percent, the lowest since 2011.
The Nikkei India Manufacturing PMI dipped from 50.3 in November to 49.1 in December.
But it is likely that campaign spending resulted in some positive activity through this period.
In the context of RBI's view that the real interest rate, defined as the repo rate less "look forward" CPI, should be around 150-200 basis points.
The rise in May Wholesale Price Index based inflation has been mainly on account of 31.44 per cent increase in prices of potato, 19.40 per cent in fruits and 12.75 per cent in rice.
The RBI expects non-food credit growth to pick up marginally to 15 per cent in 2013-14 from 14 per cent achieved in the previous fiscal and deposit mobilisation to be flat at 14 per cent.
Addressing the nation on the 70th Independence Day from the Red Fort, the prime minister had announced a 20 per cent hike in the pension for freedom fighters.
Investors will keenly watch US Fed meet starting Tuesday
The report said efforts to stabilise the economy through monetary policy interventions need to be complemented by appropriate fiscal policy measures.
Raghuram Rajan said the passage of the GST Bill augurs well for the growing political consensus for economic reforms.
According to currency dealers, any sharp movement in the rupee might result in the Reserve Bank of India intervening in the foreign exchange market.
Subdued prices of vegetables, cereals and dairy products pushed down retail inflation to a three-month low of 8.28 per cent in May.
Asserting that retail inflation excluding food and fuel is still at an elevated level, the Reserve Bank of India on Tuesday said it would endeavour to curb price increases.
On the reduction in the SLR ratio, he said it was a signal from the point of view of long-term reforms.
The rupee ended higher for the second consecutive week.
The WPI inflation stood at negative 2.4% in May 2015, compared with a negative 2.65% in April 2015.
Government's food subsidy bill tends to rise in tandem with the MSP increase.
Rate cuts are unlikely to be aggressive, in our view.
The HSBC India Manufacturing Purchasing Managers' Index, a measure of factory production, stood at 51.3 in April, unchanged from 51.3 in March, amid moderate expansion of incoming new business orders.
North Block and Mint Road seem likely to now stick to the earlier convention of the RBI governor coming to Delhi and being the only MPC member meeting the finance minister and senior bureaucrats on pre-policy meetings
The repo rate could be reduced by 50 bps in the current year.
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The food inflation in July softened to 11.24 per cent from 11.84 per cent in the previous month, according to the official data released on Monday.
Sources said Rajan will make the customary call on the Finance Minister on Monday, a day before he presents the policy.
RBI in wait and watch mode as several risks to inflation continue to exist including a sudden reversal of food prices and oil price volatility.
While India's GDP is pegged at 7.7%, China is projected to grow at 7%.
A cut in rates would have encouraged the banks to lend aggressively on the retail front.
Fourth quarter earnings of blue-chips such as Infosys, TCS, Wipro, RIL and inflation data for March will dictate the trend on the bourses in a holiday-shortened week ahead, experts said.
Industrial production (IIP) grew to a three-year high of 6.4 per cent in August, up from 4.1 per cent in July.
If a risk taker and young, NPS would suit her/him. Otherwise, s/he should go for EPF.
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