Presently the G sec rates @6.55% on 4th july 2017... looks like in the next RBI monetary policy in August 2017 the governor most probably will reduce the rates by 50bps....for the economy to rock and roll the g sec has to go below 5:50% once on intra day basis...and probably it looks like 5:50% will be reached by July 2018....I am not firing my bullet in darkness. There are two main and important reasons for the rates going down...Firstly the Current deficit compared to GDP is almost zero %....and Secondly the Crude prices around the world is going to be Below 65 USD per barrel till 2022...so both these factors will help the indian economy to rock and roll..... Now less or zero Current Account deficit means zero borrowings by the government from the RBI and from Public....Also when monetary interest rates are lower Government paying interest on its borrowing also goes down and so it has more ammunition ie money with it to spend...So like wise there are many such reasons which are not highlighted by the ...economist so called experts for the benefit of the layman investor...
Anyways Stock investing and GDP growth of the country has no direct co relation... but it only gives an outlook that good times are coming....
Anyways Stock investing and GDP growth of the country has no direct co relation... but it only gives an outlook that good times are coming....
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