1. No cut was a surprise. I had gone in with 35!
2. Looks like the RBI listened to the market which has been saying that further cuts will not help revive growth.
3. Clearly RBI is satisfied with transmission - 137 in call money and 218 in CPs! /1
4. Inflation per RBI seems a much greater risk than the market sees it. H2 revision from 3.5-3.7 to 4.7-5.1 is massive!
5. Growth revised down from 6.1 to 5 but there is belief that whatever the govt is doing to revive growth is /will work /2
Bonds have expectedly sold off more than 10 bps. Expect 10 yr to settle around 6.50%. Rupee seems unchanged at 71.57 and Nifty is holding above 12k.