RBI monetary policy: Stock markets give muted response to rate cut

Either the cut had been discounted, or smart money doesn't see the stimulus as adequate

The Monetary Policy Committee (MPC) took the plunge and reversed stance. It cut the policy rate by 25 basis points and switched stance from “calibrated tightening” to “neutral”, which means it will pump more money into the bond market. The stock market barely twitched through the policy review session. The bulls were hoping for a 50 basis points cut. The rupee strengthened marginally. 
 
The MPC has a good case. Inflation hit 18-month lows in December and the RBI estimates some sort of growth slowdown at the moment, given trends in high-speed indicators like auto sales. Low inflation and growth