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Will the RBI give a boost to the economy?

Posted on 01 Apr 2014

RBI maintains status quo on key interest rates in today s policy review. As discussed earlier events trigger momentum and another such event has taken place today outcome of this was on expected lines. The RBI has not increased key interest rates. Market consensus was inclined towards neutral to positive direction of interest rates in terms of making more money available to the people. Release of money or an increase in liquidity in the market fuels economic growth activity. Lower interest rate...

CPI inflation path is critical - Debt Market Review

Posted on 10 Mar 2014

RBI on Feb 5 2014 announced that it has successfully conducted the gilt-switch worth Rs. 27 000 Cr for securities with maturities of 2014-15 and 2015-16. The switching of GOI securities eased the redemption pressure lined up for 2014-15 and 2015-16. The government tabled its interim budget for 2014-15. As per the revised estimates the fiscal deficit for FY14 is contained at 4.6% of GDP (better than 4.8% stated in 2013-14BE). The fiscal deficit for FY15 is budgeted at 4.1% of GDP standing at Rs ...

It’s all about FMPs

Posted on 28 Feb 2014

Attractive yields and conducive interest rate scenario make FMPs a hot pick for investors. FMPs are targeting to fill up the vacant investment space created by the rise in interest rates. What are FMPs? Fixed Maturity Plans (FMPs) are close ended debt funds which invest in securities that have maturity profiles in line with the tenure of the FMP portfolio. The maturity profile of FMP can be as short as 90 days. It can also be long enough to span more than three financial years. FMPs with shorte...