” What next after RBI, FED. “

Next will be Jan 20 when Trump takes over the rein in US and Feb 1st Budget India. All this are event which will drive short term fluctuations.
We had expected RBI to stay put and not cut rates and US to cut rates. What next? This is a rare event when US increase the rate and India reduce rates. This divergence is not a great news for a Dollar starved nation like India. Higher the Interest rate differential more lucrative is India as investment destination.
Now what? Looking at the scenario, we believe that we will remain still a lucrative investment destination, but we will no more be a currency depriciating economy but will see a decent currency appreciation hence forth. Only this factor can still provide interes rate differential benefit. ( 3% interest difference and 2% currency appreciation)
So what next? If this is the scenario then we see rising stock market which will be driven by demostic driven companies, dollar denominated loan related companies will benefit, consumer and import related companies will roar.
Export oriented companies will not fall too much but will be laggared. This will be just like the market of 2006-2007 but much more fundamentally driven. The MAKE IN INDIA will show its head going forward and we will be a great beneficiary of this era.
If this assumption which we believe is going to be trueo, then we see stock markets roaring but this evenet will take its time and patience to be maintained for next 1-2 quarter.
So this is our assumption and take necessary advise from your advisor for investments based on this assumptions.
For further clarification or details do connect with Productive and Prospero Financial Services.

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