Monetary Policy: RBI guv like Kapil Dev, came out with a truly reassuring policy: Nilesh Shah

Nilesh Shah, MD, Kotak AMC, says as long as Kapil Dev was there, we were sure we could win the game. As long as RBI is there, we can be sure that they will manage everything appropriately. So, this is truly a reassuring policy to the market that we will manage no matter which ball comes to us and we’ll play it on merit.

You are an avid cricket watcher. It is a turning pitch which the RBI governor is attempting to score well at. Will he be successful?
Well, the RBI governor as of today is like the legendary all-rounder Kapil Dev. Kapil Dev could ball, bat, field and also be a captain. The RBI is also playing multiple targets. While inflation of 4% is Arjun's eye, they are also taking care of rupee, financial sector stability, liquidity in banking system and most importantly growth prospects of India. As long as Kapil Dev was there, we were sure we could win the game. As long as RBI is there, we can be sure that they will manage everything appropriately. So, this is truly a reassuring policy to the market that we will manage no matter which ball comes to us and we’ll play it on merit.

What should be the reading for the equity markets?
I think for the equity market, this policy is as per expectation and anyway equity markets have many other things to worry about. The result season is about to begin and the uneven recovery is something which markets will be looking forward to. Premium brands have done well, but the bottom half of the pyramid, especially with uneven monsoon, could get impacted.


There are also worries related to energy prices, oil moving into triple digit thanks to cartelization by OPEC and non-OPEC countries. Finally, people will start discounting what will happen towards election ‘24. So, for the equity market, this ball has come as per expectation, no googly, no turn but there are many other balls which they do not know how it will play out.