RBI’S policy announcement on 5^th Aug will decide trend for both equity and debt market. We expect RBI to increase Repo Rate 35 BPS to 50 BPS.Repo Rate may peak in Feb 23 at 6%. Looking at macro indicators, Current situation looks fine but it all depends on crude oil prices. If crude oil prices start increasing this winter. (Mind you even after Fed’s aggressing rate hike, unlike other commodities crude oil not corrected much). Then our fisc and CAD will affect negatively. We cannot afford to have High CAD deficit. On rupee front RBI managed it well so far but we believe depreciation of rupee is on the card, otherwise we have to make a lot of internal adjustment.

     In this cycle G sec will settle between 8-8.5(may be) will give good entry point for long term investors. In India for timing guy, gets opportunities. In debt first and then in equities.so we believe debt and equity funds will Do well. Role of advisor is very important in this kind of volatile market.

                                                                                                                                                                                                               Short Note by

                                                                                                                                                                                                               SANTOSH AKERKAR