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Should The RBI Cut Rates, And Under What Conditions Could It Harm Stocks? Sahil Kapoor Explains

Should The RBI Cut Rates, And Under What Conditions Could It Harm Stocks? Sahil Kapoor Explains

Shailendra Bhatnagar
Shailendra Bhatnagar
  • New Delhi ,
  • Sep 12, 2024,
  • Updated Sep 12, 2024, 5:56 PM IST

 

Should the RBI cut interest rates, and if so, by how much? Could this have a negative impact on the stock market? Sahil Kapoor, Market Strategist & Head – Products at DSP Mutual Fund, explains that the Federal Reserve is expected to cut rates first, with emerging markets like India following soon after. He highlights current domestic factors such as low inflation, reduced government borrowing compared to last year, and a stable balance of payments suggest the RBI has room to cut rates. However, the exact scale of the cut is uncertain. Sahil Kapoor also believes that the stock market has already priced in a potential 25-50 basis point cut by the US FED. Watch the full video to get more insights into how this could affect the market!

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