Following muted GDP figures, experts see more pressure on the India's central bank to lower interest rate to revive growth.
Indian economy expanded at 5.3% during the second quarter of fiscal 2013 which came in line with market expectations of 5.3%. This was lower compared with 5.5% growth in the previous quarter.
Gautam Trivedi, managing director and head of equities, Religare Capital Markets said, "Despite their stance on inflation, the RBI is likely to come under immense pressure on easing rates in the coming quarters. We maintain expectations of another 50 bps easing on the repo by March 2013, and possibly more going forward."
"India is in the midst of a twin slowdown - consumption and investment. Hence, the case for lower interest rates looks all the more likely. We believe interest rates are likely to come down by 100 bps over the next 12 months," Sameer Narang, an analyst at HDFC Securities.
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