RBI has just about started a gradual liquidity reversal process

There will not be any shock to the market, with the calendar being drawn out.

The Reserve Bank of India (RBI) has not really gotten in any surprise on the rates front, which is good for the market. The unchanged stance on repo and reverse repo rate does assuage the market. Given that other macroeconomic expectations are largely balanced with inflation to move downwards, it can be expected that there will be no change in the repo rate for the rest of the financial year.

The GDP outlook was expected to change upwards, but the RBI has retained 9.5 per cent forecast. It is sanguine on investment recovery, as well as the services sector. This