Following the latest CPI inflation data, Sandeep Daga, Founder and Chief Investment Officer of Nine Rivers Capital, said a rate hike by the Reserve Bank of India (RBI) in December cannot be entirely ruled out.
"My assessment is that falling crude reduces the probability of aggressive monetary tightening, but sustained moderation in food and core inflation is essential before the RBI turns more accommodative," he said in an interview with Moneycontrol.
Turning to the US Federal Reserve, Daga said a 25-basis-point rate hike at its December policy meeting appears increasingly likely, given persistent inflation, resilient economic activity and a relatively strong labour market in the US.
Recent economic surveys and interest-rate futures also point to a significant probability of such a move, he added.
Will Indian equities attract substantial foreign inflows going ahead? Could FY27 eventually end with net positive FII flows?