Economic Roundup, September 06, 2019

Economic Environment

  • Growth
  • Reserve Bank of India (RBI) monetary policy

How are the Indian and global economic environments affecting the financial markets?

India’s gross domestic product growth is slowing further, in pace with economic slowdown around the world. RBI policy is expected to stay on the path of easing on October 4th, when the Monetary Policy Committee (MPC) meets next, along the lines of monetary expansion by major global central banks. Though fiscal expansion will cut into the government’s target for budget deficit, it may be necessary to boost the economy. Selling pressure will continue to build on the financial markets.

What to expect from the markets next week?

Selling pressure will remain on the financial markets. Still, despite slowing growth, on a relative basis, India is the destination for foreign institutional investors. Any news from the central government on fiscal easing could boost the markets.

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