These large- and mid-cap stocks can give more than 25% return in 1 year, according to analysts

On the face of it, the RBI’s job is to decide on monetary policy. But the fact is that, as a banking regulator, it has the ability to direct resources to areas it feels require attention. What it did on Wednesday will have far-reaching effects on the economy – which is why the stock market reacted the way it did. The fact that banks have been allowed to finance M&As suggests a confidence that the Indian banking system has reached a stage where it can handle the risk of backing an entrepreneur’s assumptions about a merger or an acquisition. The grounds are probably being laid for a much more confident India.