Equities to rise further as RBI expected to cut rates

Mumbai: The expected easing of the monetary policy, as well as fresh foreign fund inflows, is likely to lift the Indian equity markets in the coming week say, experts.
However, analysts warn that continued decline in automobile sales and any rethink on the accommodative monetary policy stance on account of fiscal pressure emerging from stimulus measures might arrest the market’s upward trajectory.
According to market observers, the monetary policy committee of the RBI is expected to go ahead and further reduce the key lending rate, to give further impetus to growth.
According to Edelweiss Professional Investor Research’s Chief Market Strategist Sahil Kapoor: “The markets are looking forward to a rate cut in the upcoming RBI policy.” The RBI’s monetary policy committee (MPC) will conduct the fourth policy review of the current fiscal from October 3-4.
“The RBI monetary policy announced on October 4 can further set the tone for the rupee movement. We expect a base case cut of 25 basis points and maybe even 40 BPS. The expected range for rupee can be 70.20 to 71.20…,” said Sajal Gupta, Head, Forex and Rates, Edelweiss Securities.