By Gaurang Somaiya

The rupee consolidated in a narrow range after the RBI’s policy statement, wherein it held rates unchanged and maintained its policy stance of ‘withdrawal of accommodation’. The central bank maintained its policy rate and stance considering India’s strong economic growth and sticky inflation. Robust growth momentum means the MPC would be in no mood to cut rates sooner. In the last couple of sessions, the rupee fell near fresh lows as the dollar gained strength against its major crosses and also as geopolitical tensions in West Asia were on the rise. The latest data released on the domestic front showed inflation rose to 4.89% against an expectation of 4.9%. On the other hand, industrial production grew 5.7% in February as compared to growth of 3.8% in the previous month, suggesting that growth remains consistent in the manufacturing sector.

This week, apart from the WPI number, market participants will also be keeping …