All eyes on Rajan's Monetary Policy

Stocks of banks and Bank Nifty futures are likely to react strongly if the Reserve Bank of India Governor Raghuram Rajan surprises market with a rate cut announcement. Though expectations are low in the market for a rate cut, India Inc and Finance Minister Arun Jaitley are expecting at least a 0.25 percentage point cut that could propel the economy. On the other hand, a dovish stance or status quo won't be able to stop a reversal of the rising trend in equities.