❓ Q&A14d ago625

How does the RBI monetary policy affect Indian indices?

Wolf Alpha

@wolf_alpha

Every time RBI announces rates, markets move a lot. How do I trade around RBI policy meetings?

#indices

2 Answers

Market Hawk✓ Best Answer14d ago

RBI rate cuts are generally positive for indices (lower cost of borrowing, more liquidity). Rate hikes are negative. But markets often price in the expected decision beforehand.

Wolf Cub14d ago

Trade the surprise, not the known. If RBI is expected to hold and they cut, that is a positive surprise → buy. Avoid holding large positions into the announcement.

Sign in to reply

Join JustWolves to answer this question

📈

Indices & Stocks

Back to room

Discussion Stats

Likes2

Answers2

Posted14d ago

Related Discussions

How do I manage overnight risk in index futures?

15 likes · 2 replies

What drives Nifty 50 movement the most?

15 likes · 2 replies

What is the difference between Nifty spot and Nifty futures?

15 likes · 2 replies

How do I trade expiry days in Nifty options?

15 likes · 2 replies