Tomorrow the RBI will most likely cut repo rates to the tune of 25-35 bps because we have seen decadal low inflation at around 3%.
This interest rate cut will churn the money from bond market to equity markets.
Massive liquidity will flow to equities, pushing broader markets to all time highs soon.
The low inflation will also keep the profit margins of companies high, pushing EPS up.
The extra 12.5L income tax rebate and savings worth around ₹1L per person will also increase the discretionary spending and surplus investing.
Low inflation, low interest rates and cheaper borrowing, high discretionary spending, high consumption economy, 150 crores population, etc, etc…
All the ingredients for a perfect bull run are present.
Also, despite me telling you everything crystal clear in simple words (which nobody dares to in finance world), if you don’t make money from here, you should be out of the markets!
Only the courageous will make money.
