Policy▼ Bearish for Indian equities
RBI policy outlook: 25-bps hike likely, but economists see calibrated tightening ahead
The brief
- Dharmakirti Joshi expects a 25-basis-point hike and sees a strong possibility of another increase in December
- Further tightening could pressure Indian rate-sensitive stocks, including lenders and consumer-facing companies
- RBI repo rate: Crisil says India Inc can absorb 50-bps rate hike as corporate balance sheets remain strong
- Tata CRISIL-IBX Financial Services 3-6 Months Debt Index Fund - Regular Plan
- Indian banks faced $500 million FX losses after RBI position curbs
- Foreign capital shuns India despite strong growth: S&P-Crisil report
- Stricter DSM rules may cut renewable project IRRs by up to 100 bps: Crisil
RBI’s expected repo rate hike
Ahead of the October 7 policy, polls and analysts widely expected the RBI to raise the repo rate by 25 basis points, with one poll putting it at 5.5%. Inflation, higher oil prices and rupee weakness were cited as pressures; Crisil said India Inc could manage a 50-basis-point hike.
Tuesday, 6 October
- RBI policy outlook: 25-bps hike likely, but economists see calibrated tightening ahead