Ajay Bagga explains how FII inflows and economic recovery could fuel market growth

“The CRR reduction is very welcome as it injects immediate liquidity into the system over the next 25 days. This will help keep interest rates low, which is beneficial as we head into the busy season for credit markets. It's good that liquidity will be available. Additionally, banks that previously earned zero percent on CRR can now buy government bonds or lend this money out, improving their NIMs.”