Fund Manager View on Monetary Policy

Fund Manager View on Monetary Policy
Ashish Nigam, head-fixed income, DBS Cholamandalam Mutual Fund "The 50-basis-point CRR (cash reserve ratio) hike was already discounted by the market."
I think it's a fairly ok policy. With the FOMC (Federal Open Market Committee) cutting rates we would see some more inflows coming in. So liquidity I don't see too much of a concern... markets should be pretty positive. G-secs (government securities) look to be fairly good.
Devendra Nevgi, head-fixed income, Quantum Mutual Fund It is supportive to growth yet trying to achieve price stability and sterilise capital flows rather than moderate.
The CRR hike is an pre-emptive measure in anticipation of more flows, which were pushing up the money supply. The surprise item was of course that the medium-term inflation target was cut to 3 per cent. They seem to be very serious this time on taming down the inflation.
Mahhendra Jajoo, CIO-fixed income, ABN AMRO Mutual Fund.
The focus is on the management of liquidity so to that extent we expect the liquidity to moderate from here.
The scope for further reduction in the rate is not there for the time being. You would see a bit of a stable market going forward because the underlying momentum is for the rate to ease.
Liquid plus funds and short-term funds would continue to be favorites." Ram Nathan. K, head-fixed income, ING Mutual Fund. "We had expected no CRR hike. We continue to remain positive on the market at current levels because there is slowdown, there is evidence of inflation tapering. We are more positive on corporate bonds because the spread is quite attractive. The short-end yield could rise by around 10-15 basis points mainly because of the fact that those yields are driven by liquidity in the system which is already tight. We are positive on five- and ten-year corporate bonds. We are marginally negative on short-term corporate bonds. (On) G-secs we are neutral.
Ritesh Jain, fund manager, Principal PNB Mutual Fund.
People were not expecting the CRR hike. But this is not a rate direction as such. It will not have a significant impact on the debt market. The only thing is that there could be some excess positions in the market, which may be trimmed in the next couple of days.
We still feel that rate cut in the domestic environment is inevitable. It's just a matter of time.
Fund Manager View on Monetary Policy
Ashish Nigam, head-fixed income, DBS Cholamandalam Mutual Fund "The 50-basis-point CRR (cash reserve ratio) hike was already discounted by the market."
I think it's a fairly ok policy. With the FOMC (Federal Open Market Committee) cutting rates we would see some more inflows coming in. So liquidity I don't see too much of a concern... markets should be pretty positive. G-secs (government securities) look to be fairly good.
Devendra Nevgi, head-fixed income, Quantum Mutual Fund It is supportive to growth yet trying to achieve price stability and sterilise capital flows rather than moderate.
The CRR hike is an pre-emptive measure in anticipation of more flows, which were pushing up the money supply. The surprise item was of course that the medium-term inflation target was cut to 3 per cent. They seem to be very serious this time on taming down the inflation.
Mahhendra Jajoo, CIO-fixed income, ABN AMRO Mutual Fund.
The focus is on the management of liquidity so to that extent we expect the liquidity to moderate from here.
The scope for further reduction in the rate is not there for the time being. You would see a bit of a stable market going forward because the underlying momentum is for the rate to ease.
Liquid plus funds and short-term funds would continue to be favorites." Ram Nathan. K, head-fixed income, ING Mutual Fund. "We had expected no CRR hike. We continue to remain positive on the market at current levels because there is slowdown, there is evidence of inflation tapering. We are more positive on corporate bonds because the spread is quite attractive. The short-end yield could rise by around 10-15 basis points mainly because of the fact that those yields are driven by liquidity in the system which is already tight. We are positive on five- and ten-year corporate bonds. We are marginally negative on short-term corporate bonds. (On) G-secs we are neutral.
Ritesh Jain, fund manager, Principal PNB Mutual Fund.
People were not expecting the CRR hike. But this is not a rate direction as such. It will not have a significant impact on the debt market. The only thing is that there could be some excess positions in the market, which may be trimmed in the next couple of days.
We still feel that rate cut in the domestic environment is inevitable. It's just a matter of time.