RBI boost forex reserve

Today at 11.30 am GMT, Forex reserve data was published from India, which showed another solid boost of near $ 3 billion to $333.17 billion.

Key facts-

• Since last year India has new majority government in the center pursuing much awaited economic reforms. Monetary policy has also stabilized in guidance from Governor Raghu ram Rajan, eminent economist.

• The investors across globe and economist rank India, as top reformer and with top potential, even ahead of China.

• Improved sentiment saw 45% rally in the stock market and foreign investors showed confidence in India's bonds, boosting its rally. 10 year benchmark yield is trading at 7.69%, up 0.25% for the day.

• Indian rupee has also fared well against most of its major & emerging counterparts.

• Inflation and the current account deficit, as well as India's subsidy bills saw drastic drop thanks in parts to fallen oil price.

• The savings rate in India is going up which is sure to benefit long term.

INR continues sideways-

• The portfolio flow so far has not been able to shore the rupee much.

• Such is expected to continue as RBI curbs volatility and boost its coffer with dollar as it prepares for the rate hike in US.

• Despite being on the easing path RBI remains cautious in cutting rates, though there can be another 25 basis points to end the financial year.

India is expected to continue to be an investor favorite and continue do well in the bond and stock market.