The effect of RBI not hiking the interest rates this time around, continued this week also and the markets responded well. There was a visible sense of ease in the economic circles as the RBI clarified that although RBI wants to tame inflation, it will not do so at the risk of over-tightening monetary policy in a weak economy. It remains to be seen what the monetary policy review due on January 28th will bring forth. There is some expectation that the effects of good monsoons may give clear indication of easing inflation and consequently the RBI may continue to take a softer stand.
But there is still a month to go for these developments to take place. For now, the feel good factor rules. The first week of the new year may continue to see some positive activity, though muted, in the markets as no negative developments are foreseen.
The developments to watch out for are the Auto data from SIAM which is not expected to be any better than the last time around and also the HSBC PMI data which is also due for release.
This is RupyaGyan logging out 2013 on a good note and with a promise to bring better news and stocks related content in 2014.
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