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Below is quote on market fall on surprise RBI rate hike By Sorbh Gupta, Fund Manager- Equity, Quantum AMC

RBI’s surprise move on increasing the repo rates today is an acknowledgment of inflation becoming a more important variable in policy decisions than growth. It will not have an immediate bearing on growth in inflation but it is an indication of things to come. These types of events will come & go multiple times in an investor’s journey to achieving financial goals & one should not be swayed too much. An equity portfolio stress-tested for balance sheet strength (lower leverage) & attractive valuations of investee companies is well suited for this environment. Investors should stick to their asset allocation plans & use a staggered approach to increase allocation to equities.               

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