Traders in India Dial Back October Rate-Hike Bets After Dovish RBI Speak

Traders Dial Back October Rate-Hike Bets After Dovish RBI Speak Good morning... I’m Samie Modak in Mumbai, bringing you the latest market trends. Asian stocks are trading down early on Thursday after a recent tech-led rally on Wall Street paused. Crude oil has edged lower as Iran said it reached an agreement with Oman on a proposed route for shipping through the Strait of Hormuz, a potential step toward a reopening of the critical waterway for energy supplies. At home, Reserve Bank of India Governor Sanjay Malhotra on Wednesday signaled confidence in the local economy and said “underlying inflation pressures are muted” still. The comments came after the central bank left interest rates unchanged, and likely played a role in traders paring back their rate-hike bets (more on that below). He also ruled out closing the diaspora deposit program early, saying inflows were likely to remain robust, which should offer some support to the rupee. The benchmark Nifty has lost momentum after its June and July rally, with investors now waiting for fresh catalysts following the end of earnings season. In today’s newsletter, we bring you: