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How Expectations Move the Market?


Stock market trading is all about playing with emotions and expectations and probably that is the reason we are seeing a surge in the market as market participants are expecting that Reserve Bank of India (RBI) will cut interest rates at mid-quarter monetary policy review on 18 June 2012 to prop up slowing growth. The expectations are as high as 100 basis points cut.

It needs to be seen if we can have such a massive cut to propel the growth. However it can be possible as RBI has been hijacked by govt at center and it is dictating terms least forgetting that to propel growth, it will be unleashing inflation monster. 

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