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Below the Perspective on Markets post MPC Announcement by Sandeep Neema, Director and Fund Manager, PL Asset Management

“Today's RBI decision to hold rates at 5.25 per cent was on expected lines and markets are unlikely to see any sharp reaction. The GDP upgrade to 6.7 per cent for FY27 is a quiet confidence signal on the domestic growth outlook, reflecting the resilience of the Indian economy despite a challenging global environment. The MPC's acknowledgement of robust domestic demand, sustained government capital expenditure, and a well-capitalised banking system further reinforce this constructive view. Inflation is a near-term watch item, but the trajectory remains one of moderation beyond Q3. Rate-sensitive sectors, banking, NBFCs, real estate, and capital goods, remain well positioned with fundamentals intact, supported by stable borrowing costs and favourable financing conditions. For the broader market, this policy reinforces a supportive macro backdrop. We remain constructive, with financials, industrials, metals and consumption-oriented sectors offering the most compelling opportunities. Volatility, if any, should be used as an entry point rather than a reason for caution.”

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