Reserve bank governor D. Subbarao announced the annual credit policy. It was in line with expectations. It raised the key rates by 25 basis points. Another major point is that the run for banking licence for private players now become active. RBI will announce it’s guidelines for the same at it’s first quarter review.
As stated [...]

The cards are shown. The symbols are as expected. Reserve bank of India increased key rates. The major reason was inflation. What is the immediate reason for inflation, it is the budget proposal to hike the price of petroleum products. Everyone was against it but the rates are increased. It fueled the inflation figures and [...]

Strong selling pressure witnessed in Indian stock market during the second half of January. Year 2010 started with a positive note in Indian stock market. Traders expressed huge buying interest in the beginning. Expectations were high. Everyone predicted an upward trend only. FIIs also bought Indian stocks during this time.

Debate is on. The RBI policy is clear. Growth is the need of the hour. Inflation was a major concern, and still remains so. But reserve bank of India in it’s monetary policy only hiked CRR rate. The cash reserve ratio will become 5.75% from the present 5 percent.