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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Reliance Communications Ltd: Where it is heading?
CMP: Rs.33.30
It has been a harrowing tale for all those who invested in the shares of Reliance Communications Ltd. The stock had been falling since the last few months even though the much expected tower sell deal, a mega merger, a number of investor friendly steps, etc has been effected. However, it seems with the near termination of the free offer of RJio, this bas phase looks to be over. The sun is again likely to shine over the telecom horizons.

Moreover, telecom sector being from the essential service space should be least affected by the demonetisation fiasco; as we are approaching the deadline of 30th December 2016. The stupid and mindless demonetisation move of  Narendra Modi -- Urjit Patel has already failed, as expected and as predicted by eminent economists like Prof.Amartya Send and Dr.Kaushij Basu. Besides, no RBI governor, I have seen has spoiled the reputation (so badly and cheaply) of the RBI like Dr.Urjit Patel has done. After the failed demonetisation drive it remains to be seen whether he is being impeached by the Parliament or not. He seems to have got inuenced by the Narendra Modi - Amit Shah disease (BLUFFS and Jumlas).

 Anyway, yesterday, a buy call was initiated in the counter at Rs.33 with a short term targets of Rs.35-37. Today the scrip has already touched Rs.33.85 in the NSE, with strong volumes. What I feel is that the investors can increase their holdings in RCom or average keeping a stop loss of Rs.31.

 But one rumour which is gaining momentum is that of price rigging of the sharez of RCom by Mukhesh Ambani group to bring down the price of open offer. There is media speculation that RJio is likeky to by out Rcom in a cash+equity deal. The authorities (SEBI) should look into this matter on urgent basis and if necessary take appropriate actions.

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