Mumbai: After venting its disappointment over the Union Budget, the Indian equity market is now looking forward to the RBI’s forthcoming monetary policy announcement, which will be the central bank’s first one of 2020.
The Reserve Bank of India (RBI), after the bi-monthly meeting of its Monetary Policy Committee (MPC) on Thursday, February 6, will announce its decision on its key lending rates - repo rate and the reverse repo.
A cut in the repo, or its short-term lending rate for commercial banks, would bring cheers to the market as it would eventually result in lower interest rates.
However, in the way the central bank maintained the status quo at its last MPC meeting in December, it again holds the rates, especially with inflation rising significantly, according to analysts.
Market experts feel that after the 1,000-point slump on the Sensex and the 300 point slump on the Nifty50 on Saturday because the Budget could not live up to investors’ expectations, on Monday too, the indices may take a beating, but would eventually stabilize later in the week and move upwards. (IANS)