Bulls eye more gains, pin hope on RBI as markets stage a comeback in March

The RBI will lower the benchmark repurchase rate by 25 basis points to 6 per cent on April 4, according to the median estimate in a Bloomberg News survey

Indian markets have staged an eye-catching comeback in March after taking a drubbing in the first two months of the year, and bulls are salivating at the prospect of more gains.

Foreign investors who shunned rupee bonds and stocks in the wake of border skirmishes with Pakistan have returned as tensions eased, with inflows eclipsing those for closely-watched emerging-market rival Indonesia. Buyers are also emboldened by speculation that the central bank will add to its surprise February rate cut this week and for Prime Minister Narendra Modi’s government to win a second term.

The RBI will lower the benchmark repurchase rate by