Market impact of positives from the MPC meet may be seen with a lag

Overall RBI monetary policy was on expected lines and the policy statement highlighted its commitment to do whatever it takes to ensure financial stability

On April 07, the monetary policy committee (MPC) of the Reserve Bank of India (RBI) voted unanimously to leave the policy repo rate unchanged at 4 per cent as expected and continue to maintain an accommodative stance. 

Unlike the previous policy in February 2021, where the central bank gave a time-based guidance to remain accommodative till the end of fiscal 2021-22 (FY22), this time it shifted to a state-based guidance ensuring support till the economy revives on a durable basis. Perhaps the resurgence of COVID cases has something to do with this shift in guidance.

RBI has moderately increased the inflation guidance