In the stock market, no one's worried about anything. Apparently, it doesn't matter that crude oil made a multi-year high. Jet Airways made a 10% upmove. So nothing fundamental matters. But still, we'll keep a watch at Capitalmind. Here's three reasons why India might have seen the end of the Rate Cut cycle, or at least why bonds are likely to keep falling in price. (When yields rise, prices of bonds fall).
There's only one reason why RBI will not cut rates. When there's inflation. And if there's inflation, bond yields rise . . .