Expect the accommodative stance of RBI to continue
We expect the accommodative stance of the RBI to continue at least for the next 6-8 months, as normalcy returns. Demand for vehicles in 2021 on a yoy basis had improved, however Since Mar-21 demand has been lukewarm. Low interest rates will bring back pent up demand for the 2 wheeler market. For MSMEs, credit cycles have got stretched and low interest rates will benefit cash flows.