Dear Sir/Madam,
The Reserve Bank of India (RBI) is scheduled to announce its Annual Monetary Policy for the year 2012-13 on April 17. We expect RBI may cut the Repo Rate by 25bps to 8.25% to spur growth, while keeping Cash Reserve Ratio (CRR) unchanged. Weak economic growth momentum is the matter of concern. The Index of Industrial Production (IIP) data of April 2011-February 2012 period slowing to 3.5% as compared with 8.1% in the year ago period. Also, the January IIP data revised to 1.1% from 6.8%. The rate and degree of revision of January IIP data is impeding us to rely on it. Moreover, the Indian GDP grew at the slowest annual pace in almost three years in the October- December Quarter at 6.1%. Hence, weak Economic growth is clearly mounting pressure on the regulator to propel investment activity.
Regards,
Team Microsec Research
Microsec Capital Limited
Tel: 91 33 30512100
Fax: 91 33 30512020