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
Photo: Wallpaper.imcphoto.net
Genera Agri Corp Ltd hit another buyer freeze today at Rs.6.91 at the end of day, before closing at Rs.6.88. The scrip will reach Rs.9, in the next few trading sessions, as a pickup in seasonal rainfall tempered concern inflation will accelerate.
Today, the diversified firm (Real Estate, Special Situations and Media & Entertainment) PVP Ventures Ltd was recommended a buy to the Premium Group Members at Rs.8.10-8.30, after the source based news said that the company is now almost DEBT FREE. The company is tentative to declare its results on the 2nd week of August, 2014, according to the sources, who refused to be named. After the board meeting, the FY14, annual report will be also be out. It is to be remembered that PVP Ventures Ltd owns 70-acres of land parcel situated in the heart of the Chennai and about 4 km from Chennai Central Railway Station. This land is under joint development with Unitech Limited and Arihant Housing & Foundation Limited. Going by the response to the first few phases of this project, it is all set to be one of the largest realty projects in South India. Over the next few years, this project is expected to yield approximately Rs.1500 crores to PVP Ventures Ltd. Meanwhile, David James will be unveiled as the player-manager of the Kerala Blasters, which is the Kochi-based franchisee of the Indian Super League (ISL) owned by cricket legend Sachin Tendulkar and his partner Prasad Potluri of PVP Ventures Ltd. The scrip is therefore, moving towards Rs.11, in the coming days. 
As expected IVRCL Ltd (Rs.23.05), today formed a double bottom, and bounced from the support. The scrip should be accumulated at all declines as after the approval of any CDR package, the share price of a company, generally shoots up, Viz. Suzlon Energy Ltd, A2Z Maintenance Engineering Ltd, etc. 
A2Z Maintenance Engineering Ltd, which was recommended here in this blog, at around Rs.11-12, today hit anther upper circuits at Rs.33.35. When I recommended the scrip, few months back, many rebuked me; saying when even Rakesh Jhunjhunwala is selling his holdings, why I am recommending this kind of counter? Now they have mud on their faces.
Continuing the upward journey, Nifty closed with a huge gain of 27.90 points today at 7795.75. It was earlier mentioned to the Premium Group members, that, the bounce back from the level of 7442 and a rise of 263 points last week clearly showed buying interest at lower levels. A recovery after 5% correction was very much expected which came. However the area of 7800, being the previous high, is attracting some profit booking. Moreover, to add to the fundamentals, Indian Rupee strengthened the most in more than a week and the government bonds gained as a pickup in seasonal rainfall tempered the concern, that inflation will accelerate. According to Bloomberg: The deficit in the June-September monsoon, which accounts for more than 70% of India’s annual rainfall, has narrowed to 27% of the 50-year average, the weather department said yesterday. The gap was 43% on July 11. Gains in India’s consumer-price index slowed to 7.31% in June, the least since the gauge was introduced in January 2012. In such a scenario, the investors are suggested to focus once again on the small and mid cap counters (especially from the construction/ real estate and banking space) for some superb returns going forward; as large caps could consolidate around this range for some time and the RBI could either keep the rates unchanged or go for a slight cut. It seems the Bulls are in full control of the affairs in Dalal Street.

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