RBI: Must Stay Cautious Because of Inflation

The Reserve Bank of India Monday said it needs to remain cautious because inflation risks are still high, but it acknowledged that economic growth has slowed sharply and that it could slip below the central bank's forecast for the year.
"As macro-risks from inflation and twin deficits [India's current account gap and fiscal deficit] recede further, that could yield space down the line for monetary policy to respond more effectively to growth concerns," the RBI said in its quarterly review of macroeconomic and monetary developments.
The comments come a day ahead of the RBI's monetary policy review meeting, where it is widely expected to hold policy rates steady to keep a check on inflation despite the economy slowing to its weakest pace in nearly a decade.
A small section of economists expect the central bank to lower the rate to complement the government's recent efforts to revive economic growth.
India's economy grew 5.5% in April-June, recovering slightly from the 5.3% growth in the preceding quarter, which was the slowest in nine years.
Despite the worrying slowdown, the RBI has been reluctant to cut rates, holding steady at the past three reviews. The benchmark wholesale inflation rate accelerated to 7.81% year-on-year in September, the highest in 10 months.

HI HAM, GA..ur view on nifty this series..

Sir,

I already short 1 lot Bank of India Fut @ 276

Can You Please advice target Price

Thanks,

Regards
Somakumar

Hi Everyone, Good afternoon

Hi H A M, please do tell us whn to enter CE...waiting for ur call man...and hope u r good...:)

Hello all....looks like i have mised on an awsome bear profit for today...70 points fall is pretty big!

Hi soma, Sorry, as of now, it's difficult to say abt it, need to wait for some more time but it has resistance @296,303, keep these levels as SL, if u want to short...

Hi Madhes, Very likely but not very very sure... Let's see for some more time.
U don't wait for that target cuz if u r in profits, try to book it slowly on every dip. One humble request is, "Never neglect the profits which comes in hand...."

Hi avik, How can't I? Sure will let u know.... If u r short-term trader, u can start buying longs in equity but not in F&O, need to wait for some more time.
BTW, Am fine and hope the same from u, thank u for asking.

Hi Madhes, postional, i am checking with SR first then i wil trade