The Repo Rate Hike: Inflation Gave the Cover, the Rupee Gave the Reason

By -
Image
SumanSpeaks Independent Capital Markets & Geopolitical Intelligence RBI Policy Decoded The Repo Rate Hike: Inflation Gave the Cover, the Rupee Gave the Reason The RBI raised the repo rate by 25 basis points to 5.50 percent on 7 October 2026. With the rupee at ₹96.78 to the dollar, the Fed at 3.75–4.00 percent and bank credit growing near 18 percent, the fuller story is bigger than August CPI of 4.8 percent. The Reserve Bank of India raised the repo rate by 25 basis points to 5.50 percent on 7 October 2026. It is the first hike since February 2023, and the stance has moved from neutral to calibrated tightening. The rate decision was unanimous. The Governor cited inflation. The Monetary Policy Committee said the inflation outlook is no longer as comfortable as it was last year, and near-term rate cuts were taken off the table. That is the official story, and it is not wrong. But it is incomplete. Look at what surrounds the decision: a rupee near its record...
Post a Comment
By -

WINNING STROKES:THINK DIFFERENT:

The markets are expected to take cue from the Inflation figures at the end of the day. There are wide scale speculations that the inflation numbers will be flat. If this is the case then this could trigger a rally in the domestic bourses and more precisely in the construction counters.

Also, the fact which I mentioned in the Sunday Report regarding Reliance Industries Ltd, may not be implemented immediately by the government and hence there could be buying in the Reliance Group of companies in the next few days. I had written the follwoing lines in the latest Sunday Report, sent to the Paid members: "With the diesel demand showing an 18-per cent growth and oil companies depending on imports to bridge the gap, the Government is considering changes in tax norms to allow refineries in export-oriented units such as Reliance Industries Ltd (RIL) to feed the domestic market." But I think this could not be implemented immediately and this could trigger a rally in the RIL.

Therefore, with Crude Oil prices chugging along the high path for some days due to the Hurricane threat in the US, Reliance Industries Ltd could get the sentimental boost. It is to be understood that Reliance Industries Ltd' s GRM (Gross Refiningn Margins) increases with the rise in the crude prices. If the stock was cheap at Rs.3000, then it should be cheap even at the current price.

I have asked the Paid Members to buy into Reliance Industrial Infrastructure Ltd as the scrip has now been transferred into the F & O Segment (from 21st August, 2008). This could give some speculative gains in the counter apart from the intrinsic worth from the order backlog of the company.

Reliance Industrial Infrastructure Ltd as mentioned earlier is a large beneficiary of the orders from the Reliance Group of companies as both Anil Bhai and Mukesh Bhai have interest in it and hence it is more or less safe from the much talked "Rumoured Sibling Rivalry". Anil Bhai is having good interest in the counter in the form of Reliance Capital Ltd. Hence buy the stock at the CMP of Rs.906 for a good appreciation for the very short term and the medium term.

Yesterday, in the morning mail I advised all the Paid Members to book profits in Tech Mahindra Ltd and exit due to some negative developments in the counter. Today it fell its recommended price before recovering a little. Those who are still holding the counter are advised to sell the scrip and enter Ram Informatics Ltd as I getting good inputs from the analyst fraternity this could be a potential multi-bagger.

Comments

Post a Comment

Popular posts from this blog

By -
Image
Critical Red Flags at Rajesh Exports Ltd – Shift to Z Group Signals Deep Governance Issues. ~Sumon Mukhopadhyay. ------------------------------------ Company: Rajesh Exports Ltd (Rs.180.35). Date: January 5, 2026. Subject: Non-Compliance Leading to Z Group Classification and Investor Risks. =============== Executive Summary: A Major Regulatory Warning: As of early January 2026, Rajesh Exports has been reclassified into the Z Group (BZ Series) on both BSE and NSE. This punitive category is reserved for companies with serious compliance failures. The primary trigger: Persistent delay in submitting the Reconciliation of Share Capital Audit Report (required under Regulation 76 of SEBI's Depositories and Participants Regulations) for multiple consecutive quarters, including those ended June and September 2025. This isn't just administrative oversight—it's a serious red flag indicating potential mismatches between issued shares, demat holdings, and company record...
Read more
By -
Image
Hikaru Nakamura and Atousa Pourkashiyan: A Checkmate in Love – A Grand Union Forged on the 64 - Squares.... Introduction: Hikaru Nakamura, a name synonymous with modern chess, is a prodigy-turned-legend whose brilliance has redefined the contours of the game.  A five-time U.S. Champion, his fearless strategies and dynamic online presence have made him an unparalleled force in the chess world. In 2023, however, the grandmaster made headlines for a personal milestone: his marriage to the courageous and equally accomplished chess player, Atousa Pourkashiyan. Atousa, a Women's Grandmaster (WGM), is a celebrated chess player and a symbol of resilience. Her bold decision to compete without a hijab during the 2022 World Rapid and Blitz Championship became a landmark moment in the global spotlight. This act was a direct expression of solidarity with the Mahsa Amini protests in Iran, where women have continued to fight against oppressive mandates, demanding the freedom to choose their attir...
Read more
By -
Image
SYRMA SGS Technology Ltd (Rs.611); P owering Growth Through Data Centers and Medical Devices with Its New Pune Facility. Introduction : Syrma SGS Technology Ltd (Rs.611) is making strategic moves in high-growth sectors such as data centers and medical devices, positioning itself as a leader in the electronics manufacturing industry.  The company's newly inaugurated Pune facility is set to become a key driver of revenue growth and market expansion. This development not only supports Syrma’s commitment to the data center and healthcare industries but also enhances shareholder value through innovation and scalability. Photo : Business Line. ---------------------------------- Key Facility Details: Revolutionizing Operations Facility Scale: Spanning 26.5 acres, the new campus is designed to support 1.20 million square feet of manufacturing space, with 60,000 square feet operational in Phase 1. Investment : ₹150 crore in Phase 1, with further investment planned to scale operations. Job C...
Read more