Russia relations, LIC IPO, RBI policy stance

Relations between India and Russia came under fresh scrutiny this week. But tentative signs that India is beginning to tread more carefully suggest that discounted Russian commodities are now even less likely to provide any relief for surging inflation. Indeed, the growing upside risks to inflation prompted the RBI to adopt a less accommodative policy stance at its meeting earlier today, and we expect the repo rate to be hiked before long.