Top Indian Funds Differ on Whether India RBI Is Behind the Curve

Two of India’s top asset managers have diverging views on whether the central bank is falling behind in normalizing policy, highlighting the divide in the market’s outlook on inflation.

India’s central bank maybe underplaying inflationary risks and might have to tighten interest rates much more aggressively later, like the Federal Reserve, according to the nation’s largest asset manager SBI Funds Management Pvt. Kotak Mahindra Asset Management Ltd., however, says there aren’t demand-side pressures on inflation and the Reserve Bank of India is right in its policy approach.