Monday, June 24, 2013

Use debt to beat volatility

......With the Reserve Bank of India (RBI) deciding not to cut repo rates, despite market expectation to the contrary, investors who positioned themselves for a rate cut by investing in long-term debt funds or gilt funds have been stranded. The outlook for an interest rate cut is not as clear now, as rupee depreciation could drive up inflation, which could further curb RBI's ability to cut rates............

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