Today, as the positive mood across global markets, the Indian bulls are unlikely to fall behind, though they already had a strong day in office on Friday. We expect yet another strong opening.
The RBI on Saturday cut the repo rate, CRR and SLR besides announcing several other measures to boost liquidity into the financial system. The move would force banks to lower the interest rates leading to higher credit growth.
The much-needed breath of fresh air comes in the wake of yet another busy week, where several other countries initiated liquidity injecting measures. Bank of Japan cut interest rate to 0.3% from 0.5%. Earlier, Fed slashed interest rate by 0.5%. Similar action was also seen in China last week. However, there is still widespread skepticism over the steps taken to unfreeze the credit markets as it will be a while before things start looking up on a sustained basis.
