Lens on central bank policy statements

Technically speaking, the market saw a sharp correction that set up a pattern of lower lows. This could indicate further weakness especially since foreign portfolio investors are likely to be net sell

Central bank policy statements are likely to dominate the conversation in trading forums this fortnight. In India of course, the Gujarat elections will also come up as a topic for discussion. The Q2 GDP numbers and attendant macro data are still being digested.

The Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) was the first among a bunch of central banks to release its statement. India’s central bank holds status quo and maintains its growth outlook but it appears to be somewhat concerned about potential inflation, going forward.

The Q2 data indicate that GDP grew at about 6.3 per cent which