The US dollar suffered huge losses and traded at a three-year low, albeit recovered towards the end of the week. Two major central bank meetings also dotted the event calendar last week. News that the central bank may not pay an additional dividend to the government as was earlier believed spooked bond yields, with bond-street ignoring the reduction in additional borrowings. The Union Budget had estimated a total dividend income of Rs 74,900 crore for 2017-18 fiscal. With uncertainties from the implementation of (IND AS) 2, a favourable interest-rate environment at least in the short run will be the minimum one would hope from the Budget and MPC results.

Source: dna January 29, 2018 00:00 UTC