RBI prioritises inflation over growth; rate cut likely by Dec, say experts
The RBI maintains status quo for the 9th straight time, keeps repo rates unchanged at 6.5% and the MSF at 6.75%
The RBI maintains status quo for the 9th straight time, keeps repo rates unchanged at 6.5% and the MSF at 6.75%
In the rate-sensitive space, the financial services sector was the top performer, with IIFL Securities, Bajaj Finance, Paytm rising up to 20%.
In a similar trend, the Nifty50 climbed 409 points, or 1.8%, to 23,230 mark after the RBI kept key repo rates unchanged for the eighth time in a row at 6.5%.
The rate-sensitive stocks witnessed choppy trade after the RBI policy announcement, with auto realty, and bankex indices sliding up to 1%.
The BSE Sensex and Nifty50 are likely to open flat as GIFT Nifty was down 7 points, indicating a gap down opening for the bourses.
Rate-sensitive stocks slipped in red as the central bank raised the repo rate for the sixth time in a row, which is likely to impact consumption and demand for loans.
The stock markets slipped in red after the RBI announced rate hike, led by interest rate sensitive realty stocks.
The BSE bankex index was the top performer with a 2% gain, led by Bank of Baroda, Federal Bank, Kotak Mahindra Bank, HDFC Bank, and SBI.
The RBI governor Shaktikanta Das-led MPC keeps inflation forecast unchanged at 6.7% for the financial year 2022-23 amid upside risks to food prices.
The RBI Governor Shaktikanta Das-led MPC is expected to raise the policy rate by another 50 bps to 5.9% as retail inflation remained elevated above the RBI’s threshold of 6%.