Bloomberg News

Choksey Says Crude, Monsoon to Determine Further India Rate Cuts

April 17, 2012

Deven Choksey, managing director at K.R. Choksey Shares & Securities, comments on India’s interest rates and company earnings. The Reserve Bank of India today reduced the repurchase rate to 8 percent from 8.5 percent, an outcome predicted by only three of 25 economists in a Bloomberg News survey. Choksey spoke in a telephone interview from Mumbai.

“The impact on earnings will happen with a lag effect. It will not happen in just one quarter. It will be the second half of the financial year before we see any effect on corporate results due to the RBI’s actions.

‘‘If crude oil stays around $110 a barrel and we have a monsoon, which is above normal or normal, then we may see accelerated rate cuts over the second half of the financial year.’’

To contact the reporter on this story: Sharang Limaye in Hyderabad at slimaye@bloomberg.net

To contact the editor responsible for this story: Arijit Ghosh at aghosh@bloomberg.net


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