INSUBCONTINENT EXCLUSIVE:
liquidity boost from Reserve Bank of India will sustain the uptrend in equity markets during the coming week, analysts opined.Accordingly,
investors are eyeing a move by the RBI to ease key lending rates to bring down the cost of finance and give impetus to consumption which can
potentially rekindle the economic growth cycle.The central bank will announce FY20's second bi-monthly monetary policy on June 6,
Thursday."At this juncture investors should play domestic themes for long term to get healthy returns," said DK Aggarwal, chairman and
managing director, SMC Investments Advisors."RBI is scheduled to meet next week and it is expected that central bank may slash interest
rates by 25 bps."Currently, the policy repo, or central bank's short-term lending rate for commercial banks, stands at 6 per cent.The
proposed range of repo rate cut assumes significance as the overall economic growth rate in Q4, 2018-19 slowed on the back of slacking
consumption due to farm distress, global headwinds and stagnant wages."Nifty and Sensex have hit lifetime high on back of a broad based
The next phase of move should be supported by an expected rate cut from the RBI
Steep decline in GOI yields is indicative of easier liquidity conditions ahead," said Sahil Kapoor, chief market strategist, Edelweiss
Investor Research.According to Vinod Nair, research head, Geojit Financial Services: "Going ahead, there is high expectation on the upcoming
budget where the main agenda will be job creation, government spending, infrastructure, manufacturing, exports and tax reduction."However,
volatility in stocks and rupee might flare-up on the back of US's decision to withdraw the Generalised System of Preferences (GSP)
benefits extended to exports from India from June 5, 2019.On the currency front, the rupee last week weakened by 15 paise to close at 69.68
against the US dollar from its previous week's close of 69.53 per greenback."Expect rupee to trade in 69.30 to 70.10 range with weakness
bias on account of global risk-off," said Sajal Gupta, head, forex and rates, Edelweiss Securities.On technical charts, the NSE Nifty50
remains in an uptrend."Technically, the Nifty remains in an intermediate uptrend and traders will need to watch if the index can now hold
above the immediate support of 11,812 in the coming week for the uptrend to sustain," said Deepak Jasani, head of retail research, HDFC
