Thursday, September 03
The Reserve Bank of India will cut its key interest rate by 25 basis points to 5.25% on December 5, according to a majority of economists polled by Reuters who expect the rate to stay there through 2026.A sharp fall in food prices and tax cuts on consumer goods drove India's consumer inflation to a record low of 0.25% in October, giving the central bank room to support weak consumption despite renewed pressure on the rupee.The currency hit a new low of 89.49 against the dollar on Friday.RBI Governor Sanjay Malhotra said this week that recent economic data suggested there was still scope to cut interest rates. The RBI has held rates since August, after a cumulative 100 basis points of cuts in the first half of the year.US TARIFF CONCERNSNearly 80% of economists, 62 of 80, in a November 18-2
Indian large-caps should compound around 11-12% over the next three to five years, said Prashant Jain, co-founder and chief investment officer at 3P Investment Managers. In an interview with Nishanth Vasudevan, the seasoned fund manager spoke about the outlook for hot investment themes, IPOs, and artificial intelligence, among other topics. Edited excerpts: You've seen several market cycles-from Harshad Mehta to dotcom, 2003-07, and now the AI-led rally-do you see any familiar patterns today that remind you of past turning points? Some yes. But I would say mostly no. 1992, 2000, and 2007 were three broad periods of excessive valuations in the market. Now, if you look at valuations today, they are not excessive. In 1992, the markets went to almost 40 times multiples. Today, we are trading a
Mumbai: India's equity indices gained over 1% on Wednesday, tracking gains in global markets, as softer-than-expected US retail sales data reinforced traders' expectations that the Federal Reserve will trim interest rates in December. The Sensex and Nifty came within striking distance of the record closing levels but could not break past them. The Nifty closed at 26,205 - a few points shy of all-time closing high of 26,216 hit in September 2024, up 1.2%, or 320 points. The BSE Sensex ended at 85,609, up 1.2%, or 1,022 points. Its record closing level was 85,836. "The increased expectations of an interest rate cut in the US boosted investor sentiment as the move could trigger foreign inflows into Indian equities as US Treasuries become less attractive," said Gaurav Sharma, head of research,
