Impact of CRR cut on Indian stock market

1. It is a brave move by Reserve Bank of India( RBI) where it has cut CRR by 150 bps (including 50 bps cut announced recently) to 7.5% and the same is effective wef tommorrow.

Impact of CRR cut:  This CRR cut will increase the liqudity in banking system to the tune of Rs 60,000 crore. However lending rates will remain firm. It is a positive move for the stock market as liquidity problems have been ironed out. However this a short term booster dose for the market.

2. It is heartening to note that Indian political Bosses are working overtime and has scheduled a meeting on Monday by creating an emergency panel headed by Indian Finance Minister which will be studying the liquidity situation in the country.
Members Emergency panel:
(a) TS Narayanasami, Chairman IBA
(b) YM Deosthalee, CEO of L&T
(c) UK Sinha, CMD of UTI
(d) RM Malle of SIDBI.BL Club

3. Well, after seeing such a stock market crash, people will understand that why I have been harping on the fact that one should avoid trading in Futures as it is a sure shot recipe to disaster or shall I call it as a systematic design to steal the retail investor wealth.