CapitalStars Financial Research Pvt Ltd


CapitalStars Financial Research Private Limited is an advisory company incepted with a vision of providing fair and accurate trading and investment calls in share and commodity market.we specialize in thorough fundamental and technical research analysis in equity and commodity market to provide best equity and commodity tips to traders and investors.we provide intraday as well as delivery stock tips in NSE and BSEand commodity tips in MCX and NCDEX. Read More

Commodity Market Services

Commodity Market Services

In this service we provide 3-4 intraday calls in MCX with a high level of accuracy. The calls are given in Precious Metals, Base Metals and Energies. You can also avail Free Tips for two days to test our accuracy and if satisfied you can join the services with Capital Stars. Read More

Nifty Market Services

Nifty Future Services

We provide you around 1-2 nifty calls, Bank Nifty Futures, nifty futures tips, sgx nifty tips Daily. You can gain more profit, Get 2 days free trial calls. Read More

Equity Market Services

Equity Market Services

In this service we provide 2-4 intraday stock cash calls in NSE/BSE with a high level of accuracy.You can also avail Free Stock Tips for two days to test our accuracy and if satisfied you can join stock cash services with Capital Stars. Read More

Register now

CapitalStars provides Free Trial in Intraday as well as in Positional Services of Equity, Derivatives, and Commodities and Forex Markets. We provide recommendations in NSE, BSE, MCX, NCDEX, and MCX-SX etc. We render you enough entry and exit time in our calls so clients can easily maximize their profits. Read More

Thursday, 8 June 2017

RBI keeps its door open to cut rates, is watchful of incoming data : 8 June 2017


The six-member monetary policy committee (MPC) of the Reserve Bank of India (RBI) on Wednesday voted five-to-one to keep interest rates unchanged, preferring to remain watchful of incoming data.

Ravindra Dholakia, an external member of the MPC and professor at the Indian Institute of Management, Ahmedabad, was the dissenting vote.

Even as the central bank’s official policy stance continued to remain "neutral", the language used by RBI officials gave the impression to the market that the central bank had embraced an accommodative stance once again. The central bank kept the possibility of a future rate cut open as a “premature action at this stage risks disruptive policy reversals later and the loss of credibility”.

The stance was changed from accommodative to neutral in the last policy in February.

Retail inflation at 2.99 per cent in April “surprised on the downside and imparted high uncertainty to the (RBI inflation) outlook,” Urjit Patel, RBI governor said in his opening remarks at the policy press conference.

The RBI now expects consumer price inflation (CPI) in the range of 2-3.5 percent in the first half of the fiscal year and 3.5-4.5 per cent in the second half. Earlier, the central bank was expecting an average 4.5 per cent in the first half and 5 per cent in the second half.

“We will watch carefully in next few months the incoming data on inflation as well as the indicators of real economic activity,” said Viral Acharya, RBI deputy governor in charge of monetary policy.

The impact of demonetisation on food prices still lingered on and there was a supply glut in pulses, the central bank said.

“The current state of the economy underscores the need to revive private investment, restore banking sector health and remove infrastructural bottlenecks. Monetary policy can play a more effective role only when these factors are in place,” the policy document said.

Patel once again warned against farm debt waivers. “Unless there is an existing fiscal space in state government budgets or some space is found, the likelihood of going down this slippery path and dissipating the important gains that we have made in fiscal rectitude over the last two to three years can come undone,” he said.

“Past episodes in our country have shown that when there are significant fiscal slippages, they permeate through to inflation sooner or later. It is a path that we need to track very carefully before it gets out of hand,” he added.

Acharya urged banks to pass on benefits of lower rates. But bankers said they had done what they could.

“Banks have played their role in effective monetary policy transmission by a downward revision of their lending rates. However, the demand for credit is yet to pick up. Growth is the result of many more complex factors and not the repo rate alone,” said R P Marathe, CEO, and MD of Bank of Maharashtra.

The market interpreted the policy as “quite a dovish one” with adequate hints of rate cuts in the future. Analysts were largely expecting the repo rate to remain at the current 6.25 percent for an extended period, at least for the whole of 2017. Now that assumption could be tested.

“In our view, policy rates could remain unchanged in the foreseeable future if it is indeed strict inflation targeting that the RBI is pursuing,” said Abheek Barua, chief economist, HDFC Bank.

“However, it could also be the case that the RBI is reluctant to change its stance too soon. Therefore, if the monthly inflation momentum moves closer to the lower end of the RBI’s projected path, then a rate cut cannot be ruled out,” Barua said.

Yields on the 10-year gilt closed at 6.56 per cent, down from their previous close of 6.64 per cent, as rate cut hopes increased after the RBI policy. The rupee closed 0.15 per cent stronger at 64.33 to a dollar.

The central bank also lowered the 2017-18  gross value added estimate by 10 basis points to 7.3 percent.

In continuation with its earlier practice of lowering mandatory bond holdings by banks to improve the liquidity coverage ratio to 100 percent, the central bank cut the statutory liquidity ratio by 50 basis points to 20 percent of a bank’s deposit base.

The RBI also wanted rupee denominated bonds or masala bonds to be harmonized with external commercial borrowing norms and therefore imposed restrictions on maturity, all-in-one cost ceiling, and entities who could invest in these.

The central bank reduced the risk weights and provisioning on housing loans, which should help lower home loan interest rates.

Looking for investment in Share Market, CapitalStars Financial Research Private Limited provides you best investments Tips in Share Market.It daily provides intraday and Future calls.We generate intraday as well as delivery calls in Stock cash and F&O in NSE & BSE, Commodities.

Get more details here:-

* Investment & Trading in securities market is always subjected to market risks, past performance is not a guarantee of future performance.
* CapitalStars Investment Adviser: SEBI Registration Number: INA000001647


Post a Comment