India Prop Traders Brace for RBI Funding Squeeze

India Prop Traders Brace for RBI Funding Squeeze Good morning... I’m Alex Gabriel Simon in Mumbai with your midweek markets update. A positive month for local equities ended on a soggy note yesterday, as the Nifty slipped further away from the 24,000 mark. Things aren’t looking much brighter for July, judging by price action in Asia so far today. Adding to the subdued macro mood, the latest monsoon forecast has given local investors another reason to stay cautious, just ahead of earnings season. The weather office now expects below-normal rainfall in July, the peak monsoon month, after the driest June in more than a decade. That clouds the outlook for rural demand and inflation. The RBI has also been warning that banks’ bad-loan ratios could rise if geopolitical tensions flare up again, while its new rules on funding equity trades take effect today — more on that below. [Image text:] IBM p.LiC elue 1/10/02 L87 IBM IBM Gevt ines for.India (INDIA) IN Prohibition IST Lead (523357