Markets not factoring in policy rate cut on April 7: Kunj Bansal

In a chat with ET Now, Kunj Bansal of Centrum Weath says that the market would cheer rate cut, if any, by the the Reserve Bank of India ( RBI) in the forthcoming policy review on April 7.
ET Now: What are you expecting from the forthcoming policy review by the RBI on April 7? In case the apex bank cuts the policy rate, will it take the market into the next trajectory?

Kunj Bansal: The recent WPI reading came in at minus 2 per cent. The fact that there is a need to push up the economic growth and given the speed by which the apex bank has cut policy rates (two cuts of 25 bps each), I would not be surprised if we see another cut of similar magnitude.

ET Now: Will that please the market or is it already in the price?
Kunj Bansal: I believe, the market will welcome the move. I do not think that any rate cut is a factored in as of now. One must note that the market has also corrected considerably.

The ongoing week is a truncated one; Wednesday is the last trading day of the week. Hence, I see market to largely remain at the current level till April 6.

Any rate cut will be a positive surprise for the market and we could see some short-term gains in the market.