Weekly market analysis- RBI policy to throw positive surprise to markets

 

 

Please add info@investorsareidiots.com to your address book to ensure delivery of our emails to your in-box. Hi Promofree  Weekly market analysis- Sensex and Nifty to trend higher and ten year bond yields to fall post RBI policy on 29th of January 2013    Follow me on twitter @investorsidiots for quick analysis on market developments The Republic Day offer is back. Subscribe to the four knowledge series and save 60% on subscription and gain in priceless knowledge. Offer closed   Weekly market analysis week ended 25th January 2013 Equity market analysis- RBI rate cuts will drive equities higher RBI is expected to cut the repo rate by 25bps in its policy review on the 29thof January 2013. Equity markets have factored in a 25bps rate cut with the Sensex and Nifty closing last week at the highest levels seen in over two years. However equity markets have not factored in a 50bps rate hike by the RBI (  Read Why RBI will cut repo rate by 50bps  ). A 50bps rate hike will drive equities sharply higher. Read full analysis Fixed Income market analysis-Bond yields will fall only if there is a 50bps repo rate cut Bond markets will take down bond yields if the RBI cuts the repo rate by 50bps. The yield on the 8.15% 2022 bond can fall by 25bps on a 50bps rate cut, as the market will then factor in more rate cuts in 2013. Markets will also take the 50bps rate cut by the RBI as a thumbs up signal by the Central Bank to the Government on its efforts on fiscal consolidation. Read full analysis Republic Day 2013 Offer. Save 60% on subscription. - Offer closed The knowledge series from Investors are Idiots.com include   Tutorials on Equity and Fixed Income Investments  ,   Learn to be Your Own Fund Manager Series   and   Fixed Income Investing Series  . Subscribing for the knowledge series will enable you to make informed decisions on your equity and fixed income portfolio and you will start managing your portfolio as well as a professional fund manager would. The Republic Day offer on the Knowledge Series is Rs 10,400. You save 60% on the Republic Day  Knowledge Series offer. Click here to subscribe to the Republic Day Offer.  The Rich Investor   authored by Arjun Parthasarathy. On sale at bookstores  Click here for details of "The Rich Investor"   Have a good day Regards   Arjun Parthasarathy Editor: Investors are Idiots.com www.investorsareidiots.com       Information herein is believed to be reliable but the editor of Investors are Idiots.com Arjun Parthasarathy does not warrant its completeness or accuracy. Opinions and estimates are subject to change without notice. This information is not intended as an offer or solicitation for the purchase or sale of any financial instrument. The financial markets are inherently risky and it is assumed that those who trade these markets are fully aware of the risk of real loss involved. Unauthorized copying, distribution or sale of this publication is strictly prohibited. The author of the articles may have investments in instruments that are the subject of the articles. Copyright ¬© 2011 InvestorsareIdiots.com by Arjun Parthasarathy. Navi Mumbai. India