❓ Q&A14d ago433

How does the RBI monetary policy affect Indian indices?

Trading Wolf

@trading_wolf

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

#indices

2 Answers

Wolf Cub✓ 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.

Market Hawk14d 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.

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