Expectations are that the MPC will continue to vote for higher interest rates in its next two meetings in September and December taking the Reserve Bank of India’s (RBI) benchmark repo rate at least 50 basis points higher from the current 5.40%. One basis point is 0.01%.
Monetary policy expectations impact stocks more than rate moves: RBI paper
Equity markets are impacted more by the expectations of future monetary policy than the policy rate surprises on the day of announcement of the policy