Moneycontrol Pro Panorama | RBI keeps its feet on growth pedal

Dear Reader,

The monetary policy review was on expected lines -- status quo on repo rate and maintaining an accommodative stance. Even on liquidity, there was no reverse repo hike despite the increasing chorus calling for one.

“We don't want to rock the boat when the shore is near as there is a journey beyond the shores,” said RBI Governor Shaktikanta Das.

That sounds profound, but what does it mean?

Despite growth improving, RBI is cautious. The monetary policy resolution said the recovery is uneven and dependent on policy support. Ergo, the central bank wants to remain accommodative.

Expectedly, equity markets cheered the move. However, bond yields rose. What does the future portend after this dose of dovish cooing by the central bank? For more, read our piece here.

In the other big news of the day, the government is likely to announce the winner of the Air India bid. The secretaries of the disinvestment and civil aviation ministries of the central government have called for a press conference at 4 pm today. The Tatas are the clear frontrunner. Do keep checking Moneycontrol’s home page for the live blog and updates on the Air India bid.

TCS results due later today kick off the earnings season. Our research team argues that investors should now seriously take a look at large cap IT stocks. Read more here.

It has also written the following notes rich with investing insights:

Weekly Tactical Pick: Minda Corp

Seven stocks to play the EV opportunity in India

What else are we reading today? 

Herd Immunity Tracker: Focus shifting towards vaccination of children

FMCG profit margins could slip in pursuit of higher sales growth

Index options in commodities will be a game-changer for MCX

Climate concerns to play a key role in India’s future trade pacts

The coal crisis can be a blessing in disguise

Tim Harford: The hidden costs of cost-benefit analysis (Republished from the FT)

Switch to value stocks to prepare for inflation (Republished from the FT)

Technical Picks: JK Paper, Muthoot Finance, Bharat Electronics and Sun Pharma  (These are published every trading day before markets open and can be read on the app)

Ravi Krishnan

Moneycontrol Pro