Reaction on Monetary Policy - Mr. Amar Ambani, President & Head of Research, YES Securities

"With an extremely benign inflation reading and limited risks to upside and with the INR having stabilized, it was it was clear to us that the time is right to provide the much-needed support to economic growth. This could also be gauged from the RBI policy announcement, where members unanimously voted in favour of changing their policy stance to Neutral from that of Calibrated Tightening. To our mind, it was only a matter of whether rates were cut in today's meeting or the during the next policy meet of RBI. In our recent strategy note post Union Budget, we opined that while the Central Bank will take cognizance of the budgeted pause in the fiscal deficit glide, it will not hold back from cutting the Repo rate. The RBI chose to cut Repo by 25 basis points in today's policy itself, with four members (including the Governor) favouring a rate cut while two members opted for status quo on rates. We welcome this decision and believe that the present situation opens up doors for more rate cut action in the year 2019."

Shares of YES BANK LTD. was last trading in BSE at Rs.174.8 as compared to the previous close of Rs. 176.75. The total number of shares traded during the day was 3017527 in over 15612 trades.

The stock hit an intraday high of Rs. 178.5 and intraday low of 173.3. The net turnover during the day was Rs. 530070830.

Source : Equity Bulls

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