Indian equity markets started the year on a strong note with a 9 percent return in the first 2 months and a 4 percent return in February 2017. The month started with a prudent union budget promoting economic stability and growth which was taken very positively by the market. The key event, however, was the Reserve Bank of India(RBI) monetary policy, where RBI kept interest rates unchanged. It changed its stance from reducing interest rates further to keeping them neutral to keep inflation under check. In reaction, the interest rates moved from 6.41 percent to 6.87 percent during February 2017.