NIFTY: "The Last Mile"

MPC meeting goes with pause.

Statements about last mile to reach 4% remains tough, is clear indications no rush to cut.

Despite the cuts in West, one has to keep in mind, the rise in West is not commensurate with the rise here and hence cuts won't follow.

The cues will be more towards the East, that remains a stable policy than cuts or hikes for the time being.

Increasing the ticket size of bulk deposits, guiding the banks to manage better the asset and liability, regulations towards the SME are all point towards improving or focussing on the system related issues than policy issues, focus on percolation than any new policy.

Remains a laggard, while NIFTY gets boost in the form of rotation form IT and Pharma. With metals and bank playing the pause or fall mode and IT and PHARMA taking the other side, it is interesting to see how the price action follows this week.

Probably, the allocation of FM portfolio can be the first trigger.

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