Tuesday 4 November 2008

Worst for mkts to be over by mid-2009: CLSA

Sharmila Whelan of CLSA said the Reserve Bank's rate cut was bigger than expected. She expects another 100 bps cut in CRR and a 150 bps cut in repo.

According to Whelan, CLSA's GDP forecast for FY09 and FY10 is unchanged at 7.3% and 6.5%.

She said inflation is falling, but it will continue to eat into consumer spending.

The credit crunch and lower profit margins are impacting capex spending, she said. “The effects of interest rate cuts will emerge only after some time.”

Commenting on the markets, Whelan feels the worst would be over by mid-2009 and she sees the next business cycle by 2010.

Source: Moneycontrol

Posted by Harsh at 06:36

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