Based on the latest inflation print, average inflation for FY24 is expected to be lower than RBI’s FY24 forecast of 5.20%. At 6.5% repo, the real rate based on 1-year forward inflation is upward of 130 bps. Hence, the case for a long pause on repo rate at 6.5% has strengthened.
CAS chaos triggers liquidity spiral: Nuvama says higher participation needed to break cycle
BSE’s new Closing Auction Session has faced weak participation, with Nuvama reporting sharp declines in option premium volumes and contracts. Thin liquidity is creating a