OPEN APP
Home / Markets / Stock Markets /  Markets trade in green post RBI front loading of repo rate with 50 bps hike
Listen to this article

MUMBAI: Indian stock markets rallied after the Reserve Bank of India (RBI) raised policy rates for the third straight time to tame runway inflation. Market experts believe the front loading of rates will support the domestic currency and also help boost FPI inflows.

The central bank's rate setting panel raised the key policy repo rate-- at which the the RBI lends to banks--by 50 basis points. The market was widely hoping for a 35 basis point hike.

The benchmark Nifty rose 69 points or two-fifths of a percent to 17,451 while the Sensex was up half a percent at 58,567 after RBI governor Shatikanta das's statement. The Indian rupee traded up almost half a percent at 79.08 to a dollar.

Most market experts expect the Nifty to trade in the range of 17000-17800. The 17750-17800 is the extension of the trend line joining the lower highs of October 2021, January 2022, and April 2022 .

Following the policy announcement, Nilesh Shah, MD & CEO, Kotak AMC, said, “Markets will be happy. The repo rate hike of 50 bps is front loaded to ensure that easing inflation comes below RBIs upper band of 6 % by 4Q FY23."

India's retail inflation had remained above the 7% in June and beyond the RBI's upper tolerance limit of 6% for the sixth month in a row.

Nirmal Jain, chairman, IIFL Group, said the front loading would support the rupee and attract FII inflows, which have been positive since July after nine months of selling.

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Subscribe to Mint Newsletters
* Enter a valid email
* Thank you for subscribing to our newsletter.

Recommended For You

×
Edit Profile
Get alerts on WhatsApp
Set Preferences My ReadsWatchlistFeedbackRedeem a Gift CardLogout