INTEREST RATES
The above graph show current inflation. Inflation is projected at 2.7-3.2% in H2:2018-19 and 3.8-4.2%in H1:2019-20, with risks tilted to the upside.
The good part is Inflation is expected to stay below 5% according to RBI. This implies lower interest rates.
Pointing and Calling on Interest Rates: Lower Inflation + Interest rates may lend support to equity valuations.