While news on the monsoon front remains bleak (rainfall during June 1 to 17 was 45 per cent below normal), water levels in reservoirs across the country are dwindling, Citi economist Rohini Malkani said on Monday. Earlier this month, Citi revised its FY'10 GDP forecast for India to 6.8 per cent from 5.5 per cent and it raised its view to 7.8 per cent from 6.6 per cent for FY'11 on the back of election results and higher investment growth.
Earlier this month, the global financial services major revised its outlook for India's GDP growth for 2009-10 to 6.8 per cent from 5.5 per cent and for the next fiscal to 7.8 per cent from 6.6 per cent. The bank's revision of India's GDP forecast is mainly on higher investment growth, Citi said adding the key driver during FY'03-08 was the 17.1 per cent compounded annual growth in investments.
China is reportedly buying the precious metal with its gold reserves now pegged at 1,054 tonnes from 454 tonnes in 2003, which is one of the reasons for the boost in the prices.
The battered rupee is likely to trade in the range of 54-56 against dollar in the current fiscal with a possibility of widening of this band depending on strengthening of the US unit, Citi Research said.
CPI inflation could fall marginally but stay above RBI's comfort level.
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