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Below is MPC reaction quote from Vinod Nair, Head of Research, Geojit Financial Services

"The market and rate-sensitive stocks & sectors should not be dampened by the strong rate hike of 50bps as it is in line with the elevating inflation scenario and accordingly equities have been consolidating during the year.  On the bright side, there are some points of ease such as no increase in CRR, economic growth being maintained healthy at 7.2% and no additional measures announced to reduce the liquidity of the banking system. However, companies which are heavily leveraged will be impacted on a medium-term basis due to the interest rate rising cycle. The banking sector, being neutral to rising interest rate cycle for a growing economy is our top recommendation, coupled by factors like robust credit growth, lower stress, strong liquidity position and attractive valuation"

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