New Delhi, June 9 || Amid all the tariff uncertainty, India’s macros remain on a strong foothold, an HSBC Mutual Fund report said on Monday, adding that it remains constructive on Indian equities supported by the more robust medium-term growth outlook.
Due to the tariff war and global outlook, demand for safe-haven assets has led to capital outflows and weighed on emerging market (EM) currencies, including India.
"India’s exposure to the US, its trade diplomacy, and the RBI’s steady hand and its policy approach have put India on the leaderboard amid the tariff concerns that have eclipsed business and growth outlook, globally," said the outlook report.
India’s cooling inflation has provided the RBI MPC to focus on supporting growth by way of front-loaded policy easing. The MPC’s shift to a neutral stance implies that the scope for future cuts might be limited and also that it will remain data-dependent.
According to the report, the RBI will continue to focus on keeping system liquidity in surplus for faster monetary policy transmission to rates.