RBI Policy: Dove is not even hopping, forget about flying
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Dove is not even hopping, forget about flying!
RBI Guv once again decided not to bite the bullet. This is now becoming extreme dovish stance from RBI.
Cut of 25 bps was widely expected and would have uplifted the sentiments. At this juncture, post long stint of shrinking economy and then Demon, people were postponing the demand. This rate cut was necessary from the perspective of bringing that demand back in the system.
Markets would react bit nervously to this stance and we think it will correct marginally, to settle around 8500-8600 levels. From the long term perspective corporate earnings are showing some green shoots as against the weak expectation because of Demon.
We think this correction should be used as an opportunity to deploy more money in the equity markets from the long term perspective.
--- Mr. Motilal Oswal, CMD, Motilal Oswal Financial Services Ltd
Motilal Oswal was founded in 1987 as a small sub-broking unit, with just two people running the show. Today it has a 2000 member team with a networth of Rs7 bn and market capitalization as of March 31, 2008 at Rs19 bn.
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