Most of the analyst/ Investment guru's across the world are able to gauge the future of financial market by just analysis on US FED governor Yellen's statement; especially the terms like "HAWKISH" and "DOVISH" have caused enough trigger in past and plenty of evidence of the same.
It's time, we in India also understood RBI Policy and made sure that "Status Quo" is not enough but we need to follow the comment from "Superman" Rajan to understand whether his view/stance will be "Hawkish or Dovish" and more towards Short term or Medium term economic stability views.
Just to re-iterate this let's take few example on the RBI Policy outcome today:-
1) RBI policy no change; Superman makes a dovish statement with short term view for inflation and further rate cuts...without too much of enforcement on banks to pass on the rate cut, market will not react much and we can see a positive close for Nifty and Bank Nifty today.
2) RBI Policy no change; Superman makes a hawkish statement especially enforcing the banks to pass the rate cut and also hints on medium term economic stability on how he plans to make the banking sector more healthy in the long run and reduce the bad loans or even some kind of clean-up process (hinting on bankruptcy laws or waiting for cues on fiscal consolidation) ... we can see the Nifty and Bank nifty correct heavily today but pull back to happen very shortly as well due to budgetary expectation .
3) RBI Policy Rate cut done; Superman enforcing banks; Bank Nifty will close on a higher positive note.
Please note the magnitude of the Hawkish and Dovish statement also depends on which other topics which will be brushed upon in the superman Rajan's speech followed by RBI policy on Repo rate and CRR. As in Past especially FY 2014-15 Rajan was known for his Hawkish action and dovish guidelines.
So lets hope you have got enough clues to decipher the RBI policy to be announced today during market hours....Enjoy Trading.
Learn N Earn Team.
It's time, we in India also understood RBI Policy and made sure that "Status Quo" is not enough but we need to follow the comment from "Superman" Rajan to understand whether his view/stance will be "Hawkish or Dovish" and more towards Short term or Medium term economic stability views.
Just to re-iterate this let's take few example on the RBI Policy outcome today:-
1) RBI policy no change; Superman makes a dovish statement with short term view for inflation and further rate cuts...without too much of enforcement on banks to pass on the rate cut, market will not react much and we can see a positive close for Nifty and Bank Nifty today.
2) RBI Policy no change; Superman makes a hawkish statement especially enforcing the banks to pass the rate cut and also hints on medium term economic stability on how he plans to make the banking sector more healthy in the long run and reduce the bad loans or even some kind of clean-up process (hinting on bankruptcy laws or waiting for cues on fiscal consolidation) ... we can see the Nifty and Bank nifty correct heavily today but pull back to happen very shortly as well due to budgetary expectation .
3) RBI Policy Rate cut done; Superman enforcing banks; Bank Nifty will close on a higher positive note.
Please note the magnitude of the Hawkish and Dovish statement also depends on which other topics which will be brushed upon in the superman Rajan's speech followed by RBI policy on Repo rate and CRR. As in Past especially FY 2014-15 Rajan was known for his Hawkish action and dovish guidelines.
So lets hope you have got enough clues to decipher the RBI policy to be announced today during market hours....Enjoy Trading.
Learn N Earn Team.
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