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Market move● Neutral for Indian equities
Will RBI rate hikes intensify selloff in bank stocks? Analysts explain why fears may be overdone
The brief
- Bank shares have seen steep declines as investors brace for imminent RBI rate hikes
- Some analysts say fears may be overdone
- Rate expectations and bank-stock sentiment matter for Indian lenders and banking-sector investors
- RBI may raise repo rate by 100 bps through H1 2027: BofA Securities
- RBI may face two hikes, one dilemma as repo rate is seen hitting 5.75% soon: Report
- RBI MPC October 2026: Sanjay Malhotra & co may raise interest rates to 5.50% as inflation broadens, poll finds
- Broadening inflation and strong growth add to pressure for an RBI rate hike
- HSBC expects RBI to raise rates by 50 bps in FY27