Mr. Dipen shah, Head -Fundamental Research at Kotak Securities shared his opinions on the impact the central bank’s (RBI) plan will have on the Indian markets.

Mr. Shah said that the central banking institution has slashed rates by 50 bps.

But, the bank left the CRR unaltered, as projected.

“We believe that, the RBI has not assumed any fuel price increase while setting these targets. So, if these price increases do come, the targets for inflation and GDP growth might change. And, the RBI has clearly stated that, the fuel price increase is a pre-requisite for future rate cuts to happen. We believe that, the RBI has done its bit by reducing rates by 50bps. So, this once again brings the focus on the fiscal initiatives to be taken by the Government,” he added.

Mr. Shah also said that for the Indian markets, the administration now have only the monetary action to yearn for.

The future course of the market depends upon how fast the administration is capable of resuming the reforms procedure.

“We believe that, the Government will start taking important decisions on reforms in due course, which will provide further impetus to the overall economy in the long term.”

Till these plans are taken forward, Indian stock markets may stay range-bound and may be determined further by the quarterly figures as well as the worldwide market conditions.