Expect RBI to Continue Its Easing Policy, Says UBS Securities’s Chhaochharia

The video discusses the impact of a recent tax stimulus on markets, highlighting concerns about slowing growth and renewed issues in the banking system. It explores fiscal maneuverability, the role of the RBI in economic policy, and the potential for privatization to meet fiscal targets. The UBS strategy on India equities is also covered, with a focus on medium-term reforms and market outlook.

What was the initial market reaction to the recent tax stimulus?

• The markets showed no reaction.

• The markets declined sharply.

• The markets experienced a significant rise.

• The markets remained stable.

What is one of the main concerns affecting market sentiment in the near term?

• Rising unemployment

• Banking system stability

• Increasing foreign investments

• High inflation rates

How did the corporate tax rate cut impact fiscal concerns?

• It alleviated fiscal worries.

• It had no impact on fiscal concerns.

• It increased fiscal worries in the near term.

• It resolved all fiscal issues.

What is considered a potential solution to meet fiscal targets following the tax cuts?

• Raising interest rates

• Increasing foreign aid

• Reducing public spending

• Privatization

What is the medium-term outlook for Indian equities according to the APAC strategist?

• Neutral with a positive bias

• Pessimistic with expected declines

• Highly optimistic with rapid growth

• Negative with no potential for growth