Mutual Funds Commodities Research Tax Planning IPO Our Team Contact Us  

| More

Views on Dec, 2020 RBI Monetary Policy from Industry Experts

Posted On: 2020-12-04 03:32:22 (Time Zone: Arizona, USA)

Sudhakar Shanbhag, Chief Investment Officer, Kotak Mahindra Life Insurance Company Ltd

"The MPC has unanimously agreed to hold rates and the accommodative stance to support growth post Covid period while being mindful of the inflation numbers. Since liquidity measures are expected to continue which was one of the worries of the market before policy, yields are expected to remain benign with the steepness of the curve to continue."

Lakshmi Iyer, President and Chief Investment Officer (Debt) & Head Products, Kotak Mahindra Asset Management Company

"RBI has maintained status quo on rates in line with expectation. The policy continues to maintain its accommodative stance well into the next financial year as well. We view this move as a positive step towards anchoring bond yields and ease further from current levels. While inflation guidance has been increased, there seems to be no urgency to withdraw liquidity prematurely as growth considerations remain equally strong."

Mr. Mohit Ralhan, Managing Partner & CIO, TIW Private Equity

"Maintaining accommodative stance and status quo by RBI is on expected lines. It's encouraging to get confirmation from RBI on the economic recovery. RBI also continues to take measures to safeguard our financial system for long term stability and drive towards digital payments. The intent is extremely positive and the focus will be on the continuation of economic recovery. We believe that the Mar-2020 quarter is highly likely to mark the return to normality."

Ms. Padmaja Chunduru, MD & CEO, Indian Bank

"The tone remains dovish though repo rate change was kept on hold and adding a promise to take steps to boost growth. Continued accommodative stance will boost business confidence further. We can hope that signs of recovery in Q2 and positive growth projected for H2 will improve debt servicing capacity of corporates going ahead."

Mr. Raghvendra Nath, MD, Ladderup Wealth Management

"RBI has maintained its accommodative stance on interest rates which is in line with the broader market expectations.

With inflation already rearing its head, rate cuts are no longer an expectation. In fact the surplus liquidity in the banking system is effectively putting a cap on any upside to yields. Also any further rate cuts may not provide more impetus to the Economic Recovery. RBI has acknowledged the recovery in GDP and is hopeful that the GDP growth would be positive in the next half of the year, but is non-committal towards the extent of Economic Recovery. RBI has also indicated that they will manage the forex volatility, which effectively means that it would continue to buy the USD as the inflows from FPIs continue to remain strong, leading to stronger forex reserves.

There is still a lot of uncertainty around the extent of potential defaults in the loans that are under moratorium. This extent of risk is currently immeasurable and therefore has not been factored in the market yields. In case the defaults on moratorium loans are larger than expected, RBI would have to come forward and tackle the situation through its monetary tools."

Mr. Niraj Kumar, CIO, Future Generali India Life Insurance

"MPC has yet again delivered a 'Balanced Policy with a positive tone' and has conspicuously been more sanguine on Growth. MPC, while being cognizant and cautious on the elevated incumbent Inflation levels, has reassured the markets of continued accommodative stance with liquidity support to revive growth on a durable basis. The upgrade in the GDP forecasts and the extension of TLTRO's to other stressed sectors are some of the key positives. The growth optimism in the policy and undertone is quite encouraging as RBI had been advocating to do whatever it takes to support the economy and financial sector and that should provide a lot of comfort to the markets."

Mr. Rajat Bahl, Chief Knowledge Officer, Research Division, Brickwork Ratings

"GDP estimate of -7.5% for FY21 is close to Brickwork Ratings estimate of -7% and shows a sharp recovery from the doom- like-scenario of Q1; however, the elevated inflation projections for H2 FY21 and H1 FY22 imply that the space for any further monetary support is now dismal. Maintaining an accommodative stance under this elevated inflation environment is a risk, but augurs well for the bond market that had started showing signs of tightening especially for NBFCs.

A risk based supervision for NBFCs and an expectation of a stronger risk and governance framework from NBFCs is a welcome move that will strengthen the sector and provide confidence to investors".

Source: Equity Bulls

Click here to send ur comments or to

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., 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. 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:

Wipro - Beware of integration / impairment risks! - ICICI Securities

Easy Trip Planners Ltd - IPO Review - ICICI Direct

ICICI Direct - Derivatives Weekly View (March 5): Level of 14700 remains crucial for upsides to continue...

Easy Trip Planners Ltd. - IPO - Strong Financials - Reliance Securities

Bharat Forge - Initiating Coverage - Constant evolution - HDFC Securities

Mahindra Logistics - Large-ticket deal win - ICICI Securities

Company Update - Huhtamaki India - ICICI Direct

Gladiator Stocks: IndusInd Bank, VIP Industries - ICICI Direct

Warehousing demand expected to grow around 160% to reach 35 million sq. ft in 2021: JLL

Telecom - Spectrum auction: Prudent investment by Bharti Airtel - ICICI Securities

JB Chemicals & Pharmaceuticals - Analyst meet takeaways - ICICI Securities

IPO Review - MTAR Technologies Ltd - ICICI Direct

Auto Sector - Monthly Volume Round-up - Feb 21 - Decent YoY Growth Continues

Aditya Birla Fashion and Retail - Focus on scaling up new businesses - ICICI Securities

Automobiles (wholesale) - Wholesales push continues despite modest retail trends - ICICI Securities

Aditya Birla Capital - Thoughtful (inclusive) conglomerate business evolution commands premium - ICICI Securities

Jubilant Foodworks - Buying in-the-money options - ICICI Securities

Multi Commodity Exchange of India - Play on rising commodity prices? - ICICI Securities

Gladiator Stocks - Sudarshan Chemical - ICICI Direct

Monthly Commodities Outlook - March 2021 - ICICI Direct

ICICI Direct - Monthly Currency Outlook: Rupee to depreciate further towards 75.00 level...

ICICI Direct - Covid Recovery Pulse - E-way bill generation in February 2021 starts on strong note...

Company Update - Virtual JLR Investor Event - Tata Motors - ICICI Direct

Analyst Meet Update - Aditya Birla Fashion and Retail - ICICI Direct

MTAR Technologies Ltd. - IPO - Huge Opportunities from Clean Energy Bodes Well - Reliance Research

ICICI Direct Derivatives Weekly View (February 26): Failure to move above 14700 may extend declines towards 14300...

Bank: Sector Credit Trends - Slows, Yet again - HDFC Securities

Piramal Enterprises - Pharma day highlights - ICICI Securities

Polymer price tracker - PVC prices rise sharply again! - ICICI Securities

Greenply Industries - Growth returns, at an inflection point - ICICI Securities

Tata Motors - JLR future proofing itself with rapid electric transition - ICICI Securities

Dairy - Higher freight cost and increase in Global SMP prices - ICICI Securities

Analyst Meet Update - Nestlé India (Hold): Focus on product innovation, expanding rural reach - ICICI Direct

MTAR Technologies Ltd - A strong player in booming high precision engineering... - Geojit

Rollover Report for February - March 2021 : Angel Broking

Reaction from industry experts on Q3FY21 GDP numbers

M. Govinda Rao, Chief Economic Adviser, Brickwork ratings on Q3FY21 GDP numbers

Mr. Dhiraj Relli, MD & CEO, HDFC securities views on Q3FY21 GDP Growth Number

Suman Chowdhury, Chief Analytical Officer, Acuité Ratings & Research on Q3FY21 GDP

Rollover Analysis - Feb 21, 2021 - YES Securities

Consumer Durables - Demand-driven recovery continues - HDFC Securities

Cement - Demand surprises; earnings upgrade to continue - ICICI Securities

Gladiator Stocks - TeamLease Services - ICICI Direct

Gladiator Stocks - Metals to outshine post multi-year breakout... - ICICI Direct

Company Update - Sundaram Finance - ICICI Direct

Indian pharmaceutical industry to meet an ambition of US$130 billion by 2030 through innovation-led growth: EY-FICCI report

4th Industrial Conclave - Bullish undertone, favourable valuation - HDFC Securities

Sanofi India - Weak quarter; sequential improvement - ICICI Securities

Sunteck Realty - All eyes on upcoming launches - ICICI Securities

Company Update - Tata Motors - ICICI Direct

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

disclaimer copyright © 2005 - 2020