Although there are multiple metrics to determine real returns, one popular mode is the difference between one-year government Treasury Bills and one-year projected retail inflation.
“With no further rate increase, the lure of India's real return may have diminished, especially when US Treasury is rising,” said Anindya Banerjee at Kotak Securities. “It would impact investor sentiment when the world is in a risk-off mode.”
The central bank did not raise the benchmark rate in its October bi-monthly monetary policy.
According to Marc Faber, a global market guru, tight monetary policies are good for the rupee, but not so good for the stock market.
“With no further rate increase, the lure of India's real return may have diminished, especially when US Treasury is rising,” said Anindya Banerjee at Kotak Securities. “It would impact investor sentiment when the world is in a risk-off mode.”
The central bank did not raise the benchmark rate in its October bi-monthly monetary policy.
According to Marc Faber, a global market guru, tight monetary policies are good for the rupee, but not so good for the stock market.
- Source, Economic Times, Read More Here
