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

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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...
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WINNING STROKES: THINK DIFFERENT:
S Kumars Nationwide Ltd recommended in the morning mail to the Paid Groups moved to Rs.18.30 before cooling down a bit.
The reasons: As part of the interim supplement to the foreign trade policy, government announced a special booster package for the leather and textiles sector, eased trade restrictions on the gems & jewellery sector, gave more time to the industry to meet its export obligations against concessional imports and liberalised norms for claiming dues under the duty reimbursement schemes.
Bata India Ltd recommended in the morning moved up by more than 6% before cooling down a bit. The company would be direct beneficiary of the recent package.
RBD Industries Ltd mentioned today through SMS to the Paid Groups moved up by huge volumes. Why?
Today also Ashok Leyland Ltd is moving up on the expectations of a rate cut from the RBI and also due to positives mentioned in this blog a couple of days back.
Today Syndicate Bank was recommended to the Paid Groups at around Rs.48--Rs.49, for a short term target of Rs.54.
Which are the stocks from which the investors should stay away for the time being. What are the reasons??
Today everyone in the Paid Groups were asked to accumulate English Indian Clays Ltd and other mining counters (which ones). Is Gulf Oil Corporation Ltd falling in the mining sector?? (Please refer to the report placed at: http://www.sumanspeaksplus.blogspot.com/). The mining sector posed an impressive growth of 5.3% as against 4.3% a year back.
Since the agricultural sector is not performing even after Rs.60, 000 Cr farm waiver, keep away from the stocks like Jain Irrigation Ltd, Kissan Mouldings Ltd, etc. which specifically caters to this sector.
Raymond Ltd recommended to the Paid Groups in the morning moved to Rs.80.7 before cooling down a bit.
The market is now eagerly waiting for the Rate Cut to come from the RBI to boost the demand in some sectors specially those in the Automobile and Housing space. Any rate cut might force the banks to reduce the PLRs boosting the demand in most of the sectors.
What Udayan Mukherjee do not understand is that any cheap loan or a rate cut by the Banks, will help the corporates to replace their high cost debts into low cost debts. This will boost the EPS of the companies because of less amount interest outgo.
Moreover, what is to be noted is that THERE ARE REPORTS IN A SECTION OF THE MEDIA THAT, as many as 69 of the total 145 sugar mills in Maharashtra have closed down halfway in the current season due to inadequate supply of sugarcane. This proves that dearth in production has started to hit the sugar sector, which might lead to the increase in the price of the commodity.

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