The Monetary Policy Committee (MPC) of the Reserve Bank kept the repo rate unchanged at four percent and maintained an 'accommodative' stance.
“The absence of conversation on asset quality (in the RBI policy) suggests that there is some stability there, it’s not a risk perceived to be and at the end of the day that provides certain amount of support to the stocks rather than worrying too much about the rate cycle coming to an end,” said Aditya Narain of Edelweiss Securities in an interview to CNBC-TV18.
Speaking about market, he said, “A lot of the market performance seen has been a global overlay of markets being strong and our both fiscal and monetary policy being very decided.”
“As far as India is concerned, from monetary perspective we are getting fiscal support that probably would need to be a bit more. So, the bottom-line is this reassures the market; I am not sure if it’s really sustain or provide next leg of a kicker to the market,” he said.
For entire interview, watch video