01-08-2018

RBI hiked repo rates by 25 bps to 6.5%. GDP growth for 2018-19 fiscal is retained at 7.4% with growth climbing to 7.5-7.6% in first half. Inflation in second half of this fiscal is expected to be 4.8% and 5% in Q1 of next fiscal. RBI maintained neutral stance citing evenly balanced risks. RBI Governor said that risks emanate from Crude prices, trade and currency wars, financial markets volatility and rising input costs. He also added that capacity utilization is robust and investment is picking up. Non food credit is growing at 13%. FDI inflows have improved significantly, while FII inflows have declined due to strong USD.

Rupee is steady at 68.55. 10 Year yield has declined to 7.74%. Nifty has declined marginally.