Stay tuned to know RBI policy details; it is crucial for markets

Time has come to embrace the first policy decisions of the new fiscal year coming from the apex bank on Thursday. The happening there will be closely monitored by the participants having interests in the markets and economy. Meanwhile, MPC meet kicked off on Wednesday and still on. 

Equity markets will look forward to the details of the announcement coming from the RBI headquarters in southern Mumbai. Investors are waiting to note whether RBI will provide a guideline on what will be actually the government's stance on monetary policy as the financial year kicks off.

Earlier assessment done by RBI suggested that both inflation and growth are set to gain momentum in this fiscal. The primary assessment as of now looks like becoming true. This has definitely infused loads of confidence among the market participants and some are in the opinion that there will be no rate cut in this RBI meet.

Markets will also like to focus on the prospects of introduction of new tools to better manage the liquidity condition such as standing deposit facility (SDF).

As it is known, SDF may allow the apex bank to withdraw liquidity without having to post collateral. As such it is widely believed that such a tool helps reduce interest rate volatility.