Mutual Funds Commodities Research Tax Planning IPO Our Team Contact Us    
Google
Web www.equitybulls.com
Research

| More

Monetary Policy post CPI inflation numbers for August 2020 - Angel Broking

Posted On: 2020-09-15 05:18:51


Mr. Jyoti Roy - DVP - Equity Strategist, Angel Broking Ltd

"Chances of rate cuts by the RBI in its next MPC meeting seems to have dimmed with post the release of the CPI inflation for the month of August 2020 which came in at 6.69%.Inflation numbers for July was revised to 6.73% from 6.93%. The CPI inflation continues to remain stubbornly higher than 6% which is the upper end of the RBI's tolerance range for inflation. Though the high inflation numbers could be partly explained by the high food inflation of 9.05% the miscellaneous component which accounts for 27.3% of the CPI is also running high at 6.99% for the month of July. Clothing & footwear inflation at 2.77% and housing and fuel inflation at 3.1% each are helping to keep a lid on inflation.

Though we expect the CPI inflation numbers to subside going forward as food inflation is expected to come off due to a bumper Kharif crop we believe that the core inflation will continue running high for some time to come which can keep inflation above the RBIs target rate of 4% in the near future. Therefore we believe that the RBI is unlikely to cut its policy rates in the next MPC meeting which starts from the 29th of Sep'20. However we believe that the RBI will continue to use unconventional policy measure like OMOs and special OMOs in order to bring down the rates at the longer end of the yield curve given that the spread between the overnight and the 10 year G-Sec is abnormally high at over 200bps and is hindering full transmission of the 250bps rate cut by the RBI so far."


Source: Equity Bulls

Click here to send ur comments or to feedback@equitybulls.com


Disclaimer:The article above is a gist / extract of the original report prepared by the research firm / brokerage firm. This article is not to be considered as an offer to sell or a solicitation to buy any securities. This article is meant for general information only. www.equitybulls.com, its employees or owners or the research firms, its employees or owners won't be responsible for any liability that may arise from information, errors or omissions in these articles. www.equitybulls.com or its employees or owners / the research firms or its employees or clients or owners may from time to time hold positions in securities referred in this article. For detailed research reports, please contact the concerned research firm directly.





Other Headlines:

Mazagon Dock IPO fully subscribed on Day 1 - Angel Broking

Pharma - Sector Thematic - Cardiac: the heartbeat of domestic market - HDFC Securities Institutional Research Desk

Walmart-Tata Retail Deal - Mr. Himanshu Nayyar, YES SECURITIES

HDFC Securities Institutional Research Desk: Chemical Conference Report

Lupin - Launch of Fosaprepitant - Angel Broking

Infosys - Key beneficiary of increased IT spending - Angel Broking

Gateway Distriparks - Holding structure simplified; prepared for next phase of growth - ICICI Securities

Visaka Industries - Demand and pricing tailwinds sustain; maintain a compelling BUY - ICICI Securities

GSK Pharmaceuticals - Analyst call highlights - Sep 28, 2020 - ICICI Securities

HeidelbergCement India - Play on better priced Central India; initiate with BUY - ICICI Securities

Healthcare - Diagnostics: Multiple tailwinds likely to emerge - ICICI Securities

Mazagon Dock Shipbuilders Ltd - IPO Review - ICICI Securities

Persistent Systems - 28th September 2020 - Angel Broking

Canara Bank - 28th September 2020 - Angel Broking

Subscribe to UTI Asset Management Company Limited - IPO Note - Angel Broking

Multiplex Sector - Mr. Jyoti Roy - DVP - Equity Strategist, Angel Broking Ltd

Sale of Sequent stake to Strides Pharma - Angel Broking

Subscribe to Mazagon Dock Shipbuilders Ltd - IPO Note - Angel Broking

JSW Energy - First big renewable step - ICICI Securities

V-MART Retail - Best play in value fashion segment; initiating with BUY - ICICI Securities

Gas sector - New winners and losers likely on policy changes in gas sector - ICICI Securities

Mazagon Dock Shipbuilders Limited - IPO Note - Geojit

UTI Asset Management Company Limited - IPO Note - Geojit

Preview on RBI Monetary Policy - Oct 2020 - Shanti Ekambaram

Rollover Report for September 2020 - October 2020: Angel Broking

Covid Recovery Pulse - Sep 25, 2020 - ICICI Securities

Quick Comment - Suven Pharmaceuticals - ICICI Securities

Derivatives Strategy - Sep 25, 2020 - Positional Option - ICICI Securities

Gladiator Stocks - Ramco Cement - ICICI Securities

IPO Review - UTI Asset Management Company - ICICI Securities

Stock of the Day - Zensar Technologies - Sep 25, 2020 - Angel Broking

Accenture Q4FY2020 Result - Angel Broking

Granules India receives ANDA approval - Angel Broking

Zydus Cadila receives US FDA approval - Angel Broking

Cipla - ANDA approval - Mr. Yash Gupta - Equity Research Associate, Angel Broking Ltd

Mindspace REIT - Mr. Yash Gupta - Equity Research Associate, Angel Broking Ltd

UTI AMC - IPO - Mr. Jaikishan Parmar - Sr. Equity Research Analyst, Angel Broking Ltd

Balkrishna Industries - Growth momentum continues - ICICI Securities

Rollover Analysis (September 25): Nifty starts October series with low OI amid high volatility

Derivatives View (September 25): Sell Bank Nifty in range of 20650-20750 - ICICI Securities

Rollover Analysis - Sept 20: Selling climax on expiry as markets crumble - YES Securities

Zydus Wellness - Leadership in niche categories; initiate at BUY - ICICI Securities

Power - Setting the stage - ICICI Securities

Company Update - Elgi Equipments - ICICI Securities

Nano Nivesh - The Anup Engineering - ICICI Securities

RBI OMO announcement of Rs. 10000 crore - Angel Broking

TCS deal win - Sep 24, 2020 - Angel Broking

View on Pre-Monetary Policy by Upasna Bhardwaj, Senior Economist at Kotak Mahindra Bank

US FDA approval to Zydus Cadila - Angel Broking

HDFC Securities Institutional Research Desk: Cement Sector Thematic - Spotting the sweet spot







Website Created & Maintained by : Chennai Scripts
West Mambalam, Chennai - 600 033,
Tamil Nadu, India

disclaimer copyright © 2005 - 2019