Expect the accommodative stance of RBI to continue

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