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At a time when there are many risks and uncertainties in the global economy, a 20 per cent allocation to <keyword id="18712" type="General" weightage="20" keywordseo="gold" source="Orion">gold</keyword> ETFs in an investment portfolio during Diwali is ideal, said <keyword id="594214" type="General" weightage="100" keywordseo="quantum-amc" source="Orion">Quantum AMC</keyword>. In a statement issued on Monday, Quantum AMC said the correction in the gold prices from the peak has made the metal affordable this festive season. "To make the most of the correction, we recommend investing in efficient products such as gold ETFs (exchange traded funds) to maximize the benefits," Quantum AMC said. Owning physical gold comes with additional costs such as making charges, retail premiums, storage concerns, and lower buyback value. On the other hand, gold ETFs are highly liquid, incur no making charges, and ensure exposure to insured pure gold. Also, the buy-sell spreads are tight making ETFs price efficient. The rise in the US interest rates and the likelihood of the hawkish stance of the <keyword id="6355253" type="General" weightage="50" keywordseo="federal-reserve" source="Orion">Federal Reserve</keyword> converting itself into rate hikes which may go well into the next year as well may keep gold prices at the lower end of the range, <keyword id="105309" type="General" weightage="50" keywordseo="emkay-global-financial-services" source="Orion">Emkay Global Financial Services</keyword> said in a recent report. "The current spell of gold weakness may continue till there is more concrete information on the state of the economy in the major economies, especially against the background of an aggressive central bank trade-off unfavourable to growth and promoting stability," Emk ay Global remarked. Generally, gold is considered as a hedge against inflation but this time around it does not seem so. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/corporates/news/pvr-reports-net-loss-of-71-23-crore-in-q2-attributes-it-to-bollywood-hollywood-flops/articleshow/94917917.cms">PVR reports net loss of ₹71.23 crore in Q2, attributes it to Bollywood, Hollywood flops</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/finance/news/rupee-falls-19-paise-to-82-38/usd-as-foreign-outflows-weight-on-investor-sentiment/articleshow/94916562.cms">Rupee falls 19 paise to 82.38/USD as foreign outflows weight on investor sentiment</a>

20% allocation in gold ETF a better investment strategy: Quantum AMC

Gold prices ended the last month 0.7 per cent lower, supported by a depreciating rupee and festive demand for Diwali and <keyword id="4067" type="General" weightage="20" keywordseo="dhanteras" source="Orion">Dhanteras</keyword>, said <keyword id="1036842" type="General" weightage="50" keywordseo="quantum-asset-management-company" source="Orion">Quantum Asset Management Company</keyword> (AMC). On the other hand, the yellow metal prices in the international markets were down by two per cent and ended October 2022 close to $1,638 per ounce. The fall in gold prices was a result of higher-than-expected September readings of US Consumer Price Inflation (CPI) and <keyword id="15433519" type="General" weightage="50" keywordseo="us-core-personal-consumption-expenditure" source="Orion">US Core Personal Consumption Expenditure</keyword> (Core PCE) at 8.2 per cent and 5.1 per cent, respectively, which increased investor anticipation of aggressive policy moves by the US central bank, <keyword id="594214" type="General" weightage="100" keywordseo="quantum-amc" source="Orion">Quantum AMC</keyword> said. Gold is entering November expecting the <keyword id="6356435" type="General" weightage="50" keywordseo="us-federal-reserve" source="Orion">US Federal Reserve</keyword>'s fourth consecutive 75 basis point hike, as the latest data from the US economy shows that consumer spending, job openings, wage growth, and inflation expectations haven't cooled off. Given that gold registered a seventh consecutive monthly decline in October, current prices can be a good entry point for gold investors to capitalise on the upside in prices from the recession, risk aversion, and end-to-rate hikes that are to eventually follow, Quantum AMC said. According to Quantum AMC, indicative of the prevailing global uncertainty and need for diversification, global central banks bought a record 399 tons of gold ($20bn) last quarter taking full-year purchases to 673 tons, the highest since 1967. Investors too should acknowledge the risks in the current economic environment and diversify their portfolios with a gold allocation, it added. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/news/edtech-major-byjus-sacks-thousands-and-then-hires-lionel-messi/articleshow/95301630.cms">Edtech major BYJU's sacks thousands, and then hires Lionel Messi</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/news/samsung-logs-its-best-ever-diwali-sales-to-tune-of-14400-crore-in-sep-oct/articleshow/95302814.cms">Samsung logs its best ever Diwali sales to tune of ₹14,400 crore in Sep-Oct</a>

Investors can buy gold to diversify risk: Quantum AMC

A roller-coaster ride may have fewer ups and downs than what the gold market has had in 2022, industry experts said while looking back at the year that is set to end soon. "A roller-coaster ride has less ups and downs than what the bullion market had in the year 2022. Both the metals, <keyword id="508294" type="General" weightage="100" keywordseo="gold-and-silver" source="Orion">Gold and Silver</keyword>, kept the market participants on edge," <keyword id="377165" type="General" weightage="50" keywordseo="navneet-damani" source="Orion">Navneet Damani</keyword>, Senior Vice-President of Currency &amp; Commodity, Motilal Oswal Financial Services, said. According to <keyword id="630853" type="General" weightage="80" keywordseo="damani" source="Orion">Damani</keyword>, the Comex Gold has made a high of about $1,935 and a low of about $1,630, while silver on other hand made a high of about $25 and a low of about $18. There are a few factors which triggered volatility in the market like, a move in the Dollar Index and yields, aggressive monetary policy stance from major central banks, rising inflationary concern and geo-political tension, which led to this volatility. Concurring with him are Chirag Mehta, CIO and Ghazal Jain, Fund Manager- Alternative Investments, <keyword id="594214" type="General" weightage="80" keywordseo="quantum-amc" source="Orion">Quantum AMC</keyword> who said in a report: "Gold prices approached an all-time high of around $2,070 in March on the back of risk aversion triggered by the Russia-Ukraine war. But later, as the geopolitical risk premium waned coupled with the Federal Reserve's tightening spree to combat sky-high inflation, prices faced heavy downside pressure." Pointing out the repo rate hikes by the Reserve Bank of India (RBI) and the <keyword id="6356435" type="General" weightage="50" keywordseo="us-federal-reserve" source="Orion">US Federal Reserve</keyword>, the two experts said the action resulted in the flight of money from risky assets to the US dollar as the real interest rates (indicated by US 10Y Treasury Inflation Protected Securities) turned positive for the first time in two years in May 2022. "This led to a sell-off in gold taking prices down to a two-and-a-half-year low of $1,614. However, as inflation started to moderate sequentially in Q4 2022, investors started anticipating a less aggressive <keyword id="45672" type="General" weightage="80" keywordseo="fed" source="Orion">Fed</keyword> in 2023, and the dollar came under pressure helping gold prices to scale back up," the Quantum AMC report said. "Stepping into 2023, we can't be sure if this reaction is justified given that inflation in the US remains well above the Fed's two per cent target, and the Fed has made it clear that while the pace of rate hikes could slow down from here on, but the slower pace does not mean lower rates which the markets had started anticipating," the Quantum AMC officials said. According to the Quantum AMC report, there can be another 50-75 basis points hike in the first half of 2023 by the US Fed which in turn could result in bouts of volatility in both risk assets and gold as real rates rise in an environment of cooling inflation and higher nominal rates. Damani said the gold's domestic story is quite different, as even after such macro happenings there was not a great on the MCX, amidst factors like sharp depreciation in the rupee coupled with a hike in basic customs duty by five per cent on gold. He said 2022 has definitely given a boost in market participants' confidence as to gold and silver. Along with Russia-Ukraine tensions, inflationary concerns and the Covid scare in China, market participants will also carry the baggage regarding slower global growth into the next year, Damani said. "Going ahead, market participants will keenly focus on the monetary policy stance of major central bankers. A move in the Dollar Index and Yields will also be watched by the market. The gold/silver ratio has also fallen from the recent peak of about 97 to about 75, supporting the move in silver. And also apart from safe-haven bets, advancement in green technology and increase in industrial demand could continue to support silver prices," Damani remarked. According to him, there seems some signs of exhaustion in gold and silver and dips could be used as buying opportunities for any medium-to-long-term investor for the target of Rs 58,000 in gold and Rs 73,000 followed by 82,000 in silver. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/news/homebuyer-affordability-declines-in-2022-but-still-better-than-pre-pandemic-2019-level-says-knight-frank-india/articleshow/96597187.cms">Homebuyer affordability declines in 2022 but still better than pre-pandemic 2019 level, says Knight Frank India</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/sustainability/news/coals-and-other-unapproved-fuels-to-be-banned-across-ncr-from-january-1/articleshow/96575746.cms">Coals and other unapproved fuels to be banned across NCR from January 1</a>

Gold & silver markets most likely to see signs of exhaustion in 2023

New Delhi, Dec 24 () Markets regulator Sebi has imposed a total penalty of Rs 5 lakh on ICICI Prudential Trust and ICICI Prudential Asset Management Company for not exercising due diligence while making investment decisions.
 The matter relates to ICICI MF's scheme -- ICICI Prudential FMCG Fund -- which was launched in March 1999 and as per the scheme information document (SID), the objective of the scheme was to generate long-term capital appreciation through investments made primarily in equities of select group of companies in the fast-moving consumer goods (FMCG) sector.
 The regulator noted that investments were made in companies other than those in the FMCG industry which was against the mandate of the scheme and in violation of Sebi's rules and thereby ICICI Prudential AMC violated regulations.
 Further, Sebi said ICICI Prudential Trust delegated the responsibility of the trustees to the asset management company (AMC) for declaring dividend and fixing the record date for distribution of dividend declaring dividend.
 Sebi noted that trustees, being under such trust obligation ought to ensure that the timing and the quantum of distribution of dividend is in the best interest of investors and to prevent the AMC from giving benefit to select investors at the cost of maximum number of investors. "If the timing of declaration of dividend as well as quantum of dividend are decided by another entity i.e. the AMC, it will compromise the regulatory framework prescribed in this regard," it added.
 "The noticees (ICICI Prudential Trust and ICICI Prudential AMC) have not exercised due diligence in the manner as expected from them while taking decision to make investments in companies not forming part of the FMCG industry and while delegating responsibility of the trustees to AMC for declaring dividend and fixing the record date for distribution of dividend declaring dividend," Sebi said in an order passed on Monday.
 By such activities, the entities have not exercised proper due diligence and also have not exercised independent professional judgement while discharging their responsibilities at the relevant times, it added.
 Accordingly, the Securities and Exchange Board of India (Sebi) has levied a total fine of Rs 5 lakh on them. SP HRS

Sebi slaps Rs 5 lakh on ICICI Pru Trust, ICICI Pru AMC for not exercising due diligence

Chennai, The weakness in the US dollar and the likelihood of the <keyword id="17592927" type="General" weightage="80" keywordseo="US-Federal-Reserve" source="AI-Generative">US Federal Reserve</keyword> hitting the pause button on interest rate hike made gold attractive, said an analyst. "Markets now see a 77.2 per cent chance of rates remaining unchanged in the June meeting (of US Federal Reserve). Meanwhile, dollar index and bond yields retreated from their recent peak, dollar index was down by 0.73 per cent and settled at 103.56 level in the previous session. Weakness in US dollar and expectation of a pause in the US Federal reserve policy tightening campaign boosted precious metals' appeal," said Saumil Gandhi, Senior Analyst, Commodities, HDFC Securities Ltd. He said the Comex Spot <keyword id="35271" type="General" weightage="20" keywordseo="gold-price" source="Orion">gold price</keyword>s traded up on Friday, with spot gold price trading higher by 0.06 per cent at $1978.80 per ounce. While Gold August futures contract at MCX was trading up by 0.05 per cent at Rs 60,250 per 10 grams by noon. "Gold prices advanced in Asian trading hours on Friday. Yellow metal rallied as sentiments improved after dovish comments from Philadelphia Federal Reserve President Patrick Harker argued that US central bankers should not raise <keyword id="17592929" type="General" weightage="80" keywordseo="interest-rates" source="AI-Generative">interest rates</keyword> at their next meeting even though high inflation is coming down at a 'disappointingly slow' pace," Gandhi said. Comex spot gold is likely to find buyers in the range of $1965/$1950 per ounce and while $1995/$2009 per ounce is the resistance for the day. MCX Gold August future likely to find support at Rs 60,080/59,700 per 10 gram and resistance at Rs 60,580/60,750 per 10 grams, he said. With regional US banks showing signs of stability, inflation still running hot and the debt deal coming through, the US Federal Reserve may choose to raise rates in June, which will be negative for gold in the near term, said Quantum AMC in a report authored by Chirag Mehta, CIO &amp; Ghazal Jain, Fund Manager. According to Quantum AMC, if the US Fed does pause in June, whether the pause will be extended or temporary will depend on whether or not prices remain on a sustained downward path. A pause would be positive for gold prices. Over the medium term, the economic headroom for the Fed to keep raising rates is limited. Markets are still expecting the Federal Reserve to cut rates later this year. A rate cut will be preceded by deteriorating economic conditions or financial instability, making the investment case for holding portfolio diversifiers like gold strong, the Quantum AMC report said. Investors can use the current consolidation in prices to accumulate gold and build their long-term allocation, the report notes. --IANS vj/vd

Attractiveness of gold depends on US Fed's moves, say analysts

With uncertainties in the world - economics and geopolitics - investors having medium to long-term outlooks can have <keyword id="18712" type="General" weightage="20" keywordseo="Gold" source="Orion">gold</keyword> and silver in their portfolio, said <keyword id="46252" type="General" weightage="80" keywordseo="motilal-oswal" source="Orion">Motilal Oswal</keyword> Financial Services Ltd. A 20 per cent allocation to gold exchange-traded funds (ETF) in an investment portfolio during Diwali is ideal, said <keyword id="594214" type="General" weightage="80" keywordseo="quantum-amc" source="Orion">Quantum AMC</keyword>. Geopolitics, the Central bank's action and inflationary concerns are themes that are not only driving precious metals but also triggering volatility in other asset classes, said Motilal Oswal in a report. The <keyword id="6356435" type="General" weightage="50" keywordseo="us-federal-reserve" source="Orion">US Federal Reserve</keyword> is rushing to raise interest rates at an aggressive pace with an objective to tame inflation. On the other hand, geo-political tensions between Russia-Ukraine and other economies continue to increase distress in the economy. All this is raising questions regarding the pace of global growth, institutions like IMF have also lowered their projections on the same. Pointing out India as one of the largest consumers of gold and silver, Motilal Oswal said there has been a lot of development, especially on the domestic front which is supporting prices. "Government initiatives like setting up GIFT city, signing an FTA (free trade agreement) between <keyword id="6358356" type="General" weightage="50" keywordseo="uae" source="Orion">UAE</keyword> and India, (implies that about 200 tonnes of gold will be imported from UAE at 1 per cent tariff rate quota-TRQ) and changes in import duty," the company said. This year macro factors will have an upper hand over the move in metal prices, as a tighter monetary policy scenario is not a great phase for non-yielding asset gold, the report said. The gold price trend is caught between the tussle of bulls and bears. Extreme negatives do trigger bargain buying for gold and so it is important for medium to long-term investors to see a broader picture, Motilal Oswal said. Except for a few dips, the overall trend for gold has remained positive, and the returns also are quite decent, the company added. The company has suggested accumulation of gold at Rs 46,800-Rs 47,500 with a medium-term target of Rs 53,000 and a long-term target of Rs 58,000 with an expected upside of 8-17 per cent. In the case of silver, Motilal Oswal said the accumulation zone will be Rs 53,500-Rs 54,000 with a medium-term target of Rs 64,500 and a long-term target of Rs 73,000 with an expected upside of 13-28 per cent. According to Quantum AMC, the correction in the gold prices from the peak has made the metal affordable this festive season. "To make the most of the correction, we recommend investing in efficient products such as gold ETFs (exchange-traded funds) to maximize the benefits," Quantum AMC said. Owning physical gold comes with additional costs such as making charges, retail premiums, storage concerns, and lower buyback value. On its part, Emkay Global Financial Services in a report said the current weakness in gold may continue till there is more concrete information on the state of the economy in the major economies, especially against the background of an aggressive central bank trade-off unfavourable to growth and promoting stability. Generally, gold is considered as a hedge against inflation but this time around it does not seem so. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/corporates/news/global-vc-investment-falls-for-3rd-straight-quarter-report/articleshow/94985259.cms">Global VC investment falls for 3rd straight quarter: Report </a><a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/news/hong-kongs-hang-seng-index-hits-a-13-year-low/articleshow/94984206.cms">Hong Kong's Hang Seng index hits a 13 year low</a>

'Gold and Silver for medium to long term as investment'

The government has sought data on vacancies from all public sector undertakings (PSUs) and asked them to prepare a roadmap to fill those with an aim to reducing unemployment in the country. Information has been sought by the government regarding vacancies at the entry-level as well as at the senior level, a senior official of a PSU told PTI. The move comes against the backdrop of opposition parties raising concerns over rising unemployment in the country. As per the direction, identified entry-level vacancies till December this year are required to be filled by August-September next year, the official said. Filling vacancies in government institutions takes time as appointments are made in a transparent manner by following specified guidelines, the official said, adding tests and interviews are conducted based on the advertisement that specifies eligibility criteria. Each stage consumes time as aspirants across the country participate in the process, the official said.As per the official data, there were 255 Central Public Sector Enterprises (CPSEs) operating in the country at the end of FY21. Out of the 255 CPSEs, 177 are profit-making and have generated a profit of Rs 1.89 lakh crore during FY21. Last month, the finance ministry convened a meeting with heads of public sector banks and financial institutions to take stock of the employment situation in these entities and their monthly recruitment plan. The total employee strength of public sector banks peaked at 8.86 lakh during 2012-13. It declined to 7.80 lakh during 2020-21.Banks have started issuing advertisements for recruitment. For example, the country's biggest lender <keyword id="6354731" type="General" weightage="80" keywordseo="state-bank-of-india" source="Orion">State Bank of India</keyword> (<keyword id="13222" type="General" weightage="80" keywordseo="sbi" source="Orion">SBI</keyword>) recently issued advertisements for the recruitment of 1,673 probationary officers. Prime Minister <keyword id="6354477" type="General" weightage="80" keywordseo="narendra-modi" source="Orion">Narendra Modi</keyword> in June had asked various government departments and ministries to undertake the recruitment of 10 lakh people on a "mission mode" in the next one-and-a-half-year amid the opposition's frequent criticism on the issue of unemployment. The direction from the Prime Minister came following a review of the status of human resources in all government departments and ministries. The vacancies are likely to be filled before the next general elections to be held in 2024.Earlier this year, the government had said in Parliament that there were about 8.72 lakh posts vacant in various Central government departments as of March 1, 2020. The <keyword id="6355455" type="General" weightage="80" keywordseo="indian-railways" source="Orion">Indian Railways</keyword>, being the biggest recruiter in the country, has nearly 2.3 lakh posts vacant. A month after the Prime Minister's announcement, the Department of Personnel and Training (DOPT) constituted a task force to implement the plan and execute it in mission mode. India's unemployment rate dropped to 6.43 per cent in September due to an increase in labour participation in the rural and urban areas, according to data from the Centre for Monitoring Indian Economy (CMIE).During August, India's unemployment rate surged to a one-year high of 8.3 per cent as employment sequentially fell by 2 million to 394.6 million. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/news/indians-above-40-are-feeling-younger-healthier-than-gen-z-millennials-report/articleshow/94918231.cms">Indians above 40 are feeling younger &amp; healthier than Gen Z, millennials - report</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/news/20-allocation-in-gold-etf-a-better-investment-strategy-quantum-amc/articleshow/94916480.cms">20% allocation in gold ETF a better investment strategy: Quantum AMC</a>

Govt seeks data on vacancies from PSUs; roadmap to fill them

New Delhi, Feb 4 () Industry body Amfi has sought clarification from relevant tax authorities with regard to the government's plan to scrap dividend distribution tax (DDT) on mutual funds and introduction of tax deducted at source on the income distributed by such products, officials said on Tuesday.
 Industry experts believe that the government's plan to tax dividend at the hands of investors could make dividend plans in equity and balanced schemes unattractive and investors may move towards growth plans.
 In addition, long-term investment plans such as equity-linked saving schemes and retirement products will be impacted too as the proposed tax regime has no deduction available.
 Finance Minister Nirmala Sitharaman in the Union Budget 2020-21 has proposed to abolish dividend distribution tax (DDT) on the dividend declared by companies and mutual funds to shareholders or unit holders.
 Once the DDT is abolished, the dividend amount will be added to investors' taxable income and taxed as per the individual tax bracket.
 Currently, mutual funds deduct the DDT and then hand over dividend to the unit holders.
 In addition, the minister introduced a 10 per cent TDS (tax deducted at source) provision on the income distributed by a mutual fund to its unit holders if such income exceeds Rs 5,000.
 The minister proposed the insertion of a new Section -- 194K -- in the Income Tax Act, which states "any person responsible for paying income arising from units of mutual fund or a specified company must deduct tax at the rate of 10 percent of such income", according to the Finance Bill 2020.
 Samco Head (RankMF) Omkeshwar Singh said a TDS of 10 per cent has been introduced under new Section 194K for a payout of Rs 5,000 and above, however it is not clear if it considers only dividend or capital gains as well.
 "Industry body Amfi has sought formal clarifications from relevant tax authorities since TDS on long-term capital gains for equities is exempted up to Rs 1 lakh," he said.
 "We would need to wait for more clarification on this subject. Further, the new proposed tax regime has no deductions available under 80C, which was being used by governments to encourage long-term investment-cum-savings, that (ELSS or retirement) may get adversely impacted," he added.
 Several industry officials also said the Association of Mutual Funds in India (Amfi) has sought clarification from relevant tax authorities in this regard.
 "With the removal of DDT on mutual funds, dividend income from mutual funds is now taxable in the hands of the investors at their relevant tax slabs (subject to a 10 per cent TDS)," said Kaustubh Belapurkar, director, manager (research), Morningstar
 "We think this will make dividend plans in equity and balanced plans unattractive from a tax perspective for investors in the higher tax brackets as investors in a growth plan are liable to pay a LTCG (long-term capital gains) of 10 per cent," he added.
 Naveen Kukreja, CEO and co-founder of Paisabazaar.com, "The government's move will positively impact a small segment of individual investors, who are not in the highest tax slab and were investing in the fixed income instruments under the dividend option," said 
 Abhishek Bansal, Chairman and MD, Abnas Group of Companies, said the proposal is a positive move
 "Earlier, DDT was levied twice, first when a company would pay a dividend to an asset management company (AMC), second when the AMC would declare its annual profits. These year-end profits declared by the AMC could be availed of in two ways by the investor who is a customer of the AMC: Either the investor could take the gains out as a dividend or it could be invested back into the fund. If the investor took the dividend route, he would need to pay DDT again," he said.
 "This has now been replaced by a single simplified tax in terms of the abolishment of DDT and 10 per cent TDS to be applied by the AMC to its investors. This is hence a positive move," he added.
 Bansal said that now, the quantum of savings that would result because of this step needs some clarification from the government on whether the TDS is to be cut on the income component or on the entire proceedings. Clarification on the same will surely be available over the next few days as the industry has requested clarity on the same. SP HRS

Amfi seeks clarification from tax authorities on removal of DDT, TDS introduction

The Reserve Bank of India's (<keyword id="30067" type="General" weightage="100" keywordseo="rbi" source="Orion">RBI</keyword>) Monetary Policy Committee (MPC) is expected to change its stance after taking a guard against inflation by delivering a 25 basis points (bps) hike in the repo rate on April 6, said economists. "There will be a 25 bps increase (in repo rate) and change in stance -- to neutral. The decision won't be unanimous as last time. There will be a pause after the hike," <keyword id="170005" type="General" weightage="50" keywordseo="madan-sabnavis" source="Orion">Madan Sabnavis</keyword>, Chief Economist, Bank of Baroda told IANS. The MPC is likely to change policy stance to 'neutral', with a non-committal forward guidance, said <keyword id="4921330" type="General" weightage="50" keywordseo="madhavi-arora" source="Orion">Madhavi Arora</keyword>, Lead Economist, Emkay Global Financial Services. <keyword id="176" type="General" weightage="80" keywordseo="arora" source="Orion">Arora</keyword> said, the neutral stance will give the MPC flexibility to be non-committal on forward guidance, yet subtly give direction on a 'pause'. "In our view, a 'hawkish pause' is less purposeful in sending clearer forward signaling, while a 'hawkish hike' makes even less sense from the policy perspective, amid limited macro levers and expected growth slowdown ahead," Arora said. "We reckon a part of the policy compulsion was emanating from the sharp &amp; consistent (upward) repricing of global rates and the consequent fear of INR (Indian Rupee) instability through capital account and the absent high risk-premia offered by India. Both fears are likely to diminish now, implying that the RBI can choose to pause ahead and keep policy flexibility amid a still-fluid global situation," Arora added. According to Pankaj Pathak, Fund Manager- Fixed Income, Quantum AMC, unseasonal rain, early forecasts of El-Nino, rising prices of milk and sugarcane and others are negative for the inflation outlook. On the other hand, the banking crisis in the US and Europe and the slowing growth outlook might also be considered by some members. Another 25 bps rate hike with a stance change to neutral looks like the most likely outcome, Pathak said. Continuing further he said, the bond market will focus more on the RBI's future outlook. A 25 bps rate hike is broadly in price while retention or change of stance will move the bond market. Retention of the current policy stance as 'withdrawal of accommodation' will be perceived as an indication of further rate hikes and thus will be negative for the bond market. The market will also look for the RBI's position on liquidity conditions. The banking system liquidity deficit is likely to increase during the April-June period. In absence of liquidity support from the RBI, the short-term rate can move higher meaningfully, Pathak said. SEE ALSO: <a href="https://www.businessinsider.in/business/corporates/news/tcs-infosys-hcl-tech-amongst-top-picks-of-analysts-heading-into-the-q4-earnings-season/articleshow/99235686.cms">TCS, Infosys, HCL Tech amongst top picks of analysts heading into the Q4 earnings season</a> <a href="https://www.businessinsider.in/business/corporates/news/adani-group-stocks-tumble-amid-reports-of-sebi-probe-group-market-capitalisation-falls-by-22000-crore/articleshow/99214962.cms">Adani group stocks tumble amid reports of SEBI probe: Group market capitalisation falls by ₹22,000 crore</a> <a href="https://www.businessinsider.in/business/corporates/news/india-incs-credit-quality-continues-to-shine-in-fy23-slowdown-concerns-could-impact-it-textile-sectors-says-icra/articleshow/99211589.cms">India Inc’s credit quality continues to shine in FY23: Slowdown concerns could impact IT, textile sectors, says ICRA</a>

You Searched For "quantum amc" and got 9 results

20% allocation in gold ETF a better investment strategy: Quantum AMC

PTI

Investors can buy gold to diversify risk: Quantum AMC

IANS

Gold & silver markets most likely to see signs of exhaustion in 2023

IANS

Sebi slaps Rs 5 lakh on ICICI Pru Trust, ICICI Pru AMC for not exercising due diligence

PTI

Attractiveness of gold depends on US Fed's moves, say analysts

IANS

'Gold and Silver for medium to long term as investment'

IANS

Govt seeks data on vacancies from PSUs; roadmap to fill them

PTI

Amfi seeks clarification from tax authorities on removal of DDT, TDS introduction

PTI

After delivering 25 bps hike in repo rate, RBI to change its stance on April 6, say economists

IANS

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