RBI cuts Repo Rate by 25 bps to 6.25 per cent; bond, equity market may go upward, say experts
Experts say RBI Repo Rate cut move would help equity and bond market to further go northward, though it is already at its peak if compared to the major emergind economies.
After cut in Repo Rate by 0.25 per cent to 6.25 per cent, the market experts have hailed the decion taken by the Reserve Bank of India in their monetary meeting today. They said the move would help equity and bond market to further go northward, though it is already at its peak if compared to the major emergind economies.
Expecting the same ahead of the RBI monetary meeting Anindya Banerjee, Deputy Vice President at Kotak Securities had told Zee Business online, "If the RBi lowers Repo Rates, it can knock down the Rupee. That is a risk worth taking as anyways the Rupee in 2019 is not responding to high real rates, as inflows are lacking. If RBI can lower rates by 25 bps and keep the option open for another 25 bps in April, it can juice up the bond market and also rate sensitive stocks."
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Giving outlook for rupee versus dollar Anindya predicted, "Tactical bias remains bullish on dollar-rupee. Immediate bullish pivot zone is 71.45/50 on spot. Resistance around 71.80 and 72.20 and 72.40/50 on spot. Nevertheless, incase of a break of 71.45, it can test 71.15/25 zone."
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