Near decadal low repo rate may not revive economic growth, earnings yet

While experts laud the move as a step in the right direction, earnings growth may take a 3-6 quarters to recover

The Reserve Bank of India (RBI) governor surprised many with a 35 basis points (bps) repo rate cut, given that expectations were for a 25 bps cut. Yet, for the equity markets, it passed off as just another day. In fact, the Sensex and Nifty closed lower by 0.8 per cent on Wednesday. Though the rate cut was in the right direction, there are multiple reasons why markets had little to cheer for the monetary policy, starting with the lowering of GDP growth to a more cautious outlook on macro headwinds. In other words, the question is whether a near