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RBI's pro-growth policy brings cheer to D-Street, experts warn of bubble

Helped by pent-up demand and inventory push ahead of the festive season, earnings growth in September quarter is anticipated to be better than June's performance

Topics
Reserve Bank of India | stock markets | RBI monetary policy

Hamsini Karthik  |  Mumbai 

After brushing aside five consecutive monetary policy committee (MPC) announcements, Friday’s policy stoked some positive sentiments for the market. The BSE Sensex rose by over 325 points, helping the benchmark index sustain the key physiological mark of 40,000 points, which it scaled on Thursday after a gap of seven months.

What many seemed to like about the policy is the thrust on growth, which was emphasised many times by the Reserve Bank of India (RBI) governor in his speech. “Until now, the narrative has been all about controlling inflation. On Friday, the ...

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First Published: Fri, October 09 2020. 19:32 IST
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