Politics aside (trust deficiency) as a pure macro trade signal, low inflation is good for equities.
On interest rates I hold the view it's a lagging indicator in this market. There is a lot of dumb money which is not efficiently allocated. I'm not sure there is a good plan to convince the market to lower rates because there is no threat of high inflation. I guess we wait and see how the dumb money responds.
NSE-20 has increased 22% beating the best bonds on offer this year.
