RBI policy over, global factors to dictate market trajectory from here on

Squeezing of liquidity and the likely hardening of bond yields may have a near-term "sentiment" effect on the BFSI sector; overall the policy should not have too much bearing on the equity markets

The RBI MPC voted unanimously to keep rates unchanged and voted 5-1 in favor of continuing with its ongoing  accommodative policy stance. Although there were some expectations in the markets that RBI would raise the reverse repo rate, the MPC continued with its ongoing accommodative stance and left policy rates unchanged. 

While the RBI does acknowledge that the domestic economic activity is gaining momentum with the second Covid wave effects receding in the country, it probably wants to be watchful of the slack in the economy, the recovery being uneven, growth still being below pre-pandemic levels, and some of the global