RBI will review the monetary policy again on September 29.
The central bank has been intervening in the foreign exchange market by buying dollars, and this is capping the rupee's gains.
Growth in India's gross domestic product for the June quarter of 2013-14, as well as for the entire 2014-15, was 4.7%.
The Reserve Bank in its first mid-quarter policy review on Monday kept the key interest rates unchanged because of elevated food inflation, rupee depreciation and uncertainty over foreign fund inflows.
Economists caution that the underlying cause could be an alarming drop in demand -- something that's not good for economic growth.
The main reason was that CPI inflation would likely remain below 4 per cent till July.
The Reserve Bank of India kept its policy interest rate unchanged at a five-year low of 6.50 percent on Tuesday.
India Inc is borrowing from global firms as interest rates sky rocket in India.
Global liquidity expected to continue amid ECB stimulus
While Raghuram Rajan has said in the past that other factors, including domestic fundamentals, outweigh the US Fed policy meet, this time it would be different
To neutralise this, RBI has been doing forward swaps
Analysts have started talking about at least a 25 bps cut immediately.
Analysts expect the Reserve bank to cut rates in next monetary policy.
According to Rahul Rege, business head (retail) at Emkay Global Financial Services, it is difficult to track more than 10 stocks.
The repo rate has been unchanged since January, when the RBI increased it by a quarter percentage point.
Former president Sharad Pawar may have made a comeback in the Mumbai Cricket Association after being elected unopposed on Friday, but the Union Minister for Agriculture announced that he has no plans to return to the Board of Control for Cricket in India set-up.
Benchmark 10-year bond yields hit a 13-month peak as bond traders priced in more aggressive monetary easing next year.
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