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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Market Pulse
The stock market continued to trade with modest losses in mid-morning trade.

At 11:19 IST, the barometer index, the S&P BSE Sensex, fell 191.06 points or 0.58% at 32,983.33. The Nifty 50 index dropped 57.65 points or 0.57% at 10,126.50. The Sensex was trading below 33,000 level after falling below that level in intraday trade.

Weakness in global stocks weighed on sentiment on the domestic bourses. Key telecom stocks dropped. Cement stocks fell.

Key indices started the session on a negative note amid weakness in global stocks. Indices extended losses in morning trade and traded with modest losses in mid-morning trade. Among secondary indices, the S&P BSE Mid-Cap index fell 0.18%. The S&P BSE Small-Cap index declined 0.49%. Both these indices outperformed the Sensex.

The breadth, indicating the overall health of the market, was weak. On the BSE, 1,422 shares declined and 761 shares advanced. A total of 147 shares were unchanged.

Key telecom stocks dropped. Reliance Communications (down 4.42%), Idea Cellular (down 2.79%) and Bharti Airtel (down 2.54%) declined.

Cement stocks fell. Ambuja Cements (down 1.29%), ACC (down 0.98%), UltraTech Cement (down 0.53%), Grasim Industries (down 0.38%) and Shree Cement (down 0.27%) declined.

Shares of Hindustan Aeronautics were trading at Rs 1,166.85 on BSE, a discount of 3.96% from the issue price of Rs 1,215 on its debut on the bourses today, 28 March 2018. The shares got listed on the BSE at Rs 1,169. The stock had hit a high of Rs 1,184 and low of Rs 1,150 so far during the day.

On the macro front, the total revenue received under Goods and Services Tax (GST) for the month of February 2018 (received in February/March upto 26 March) has been Rs 85174 crore. 1.05 crore taxpayers have been registered under GST so far till 25 March 2018.

Overseas, Asian stocks dropped tracking overnight slide on Wall Street. US stocks closed sharply lower yesterday, 27 March 2018, erasing earlier gains, as a decline in the broader tech sector brought the major indices down. Last week, reports emerged alleging that Cambridge Analytica, an analytics company, had gathered data from 50 million Facebook profiles without users' permission, raising concerns over data privacy.

Today's Calls:
#High - Risk - High - Gain Counter: Buy Pincon Spirit Ltd at around Rs.20.70, SL: Rs.17, T: Rs.31-39-45-51. Last year in June, Pincon Spirit Ltd announced that it will set up two new plants in West Bengal at a total cost of about Rs.50 crore. The company’s board approved “setting up of a rice bran oil refinery and solvent extract automated plant at Dankuni Industrial area, West Bengal, at a tentative cost of Rs 30 crore,” Pincon Spirit said in a BSE filing. It will have a production capacity of 200 mt per day. Of the total production, 50 per cent will be for captive use of Pincon rice bran oil brand sales across India, while the rest will be for bulk supplies to corporate buyers.
The board of Pincon Spirits Ltd also approved setting up of a polythylene terephthalate bottle (PET) manufacturing plant at Asansol with a tentative cost of Rs.20 crore. The Asansol plant will have a production capacity of 10 lakh bottles per day and will be used for the company’s captive use.
The Ongoing Marriage season  and Sizzling summer months ahead is likely to push up Beer sales in India. Remain invested in Liquor companies....

#Buy NIFTY FUTURE at around 10130; SL: 10105; Target: 10168....Book PARTIAL PROFIT at around 10151.

#Intraday BUY Tech Mahindra Ltd at around Rs.633, SL: Rs.626, T: Rs.645-65. Book FULL PROFIT at around Rs.640.

#Buy BANK_NIFTY Future of 24400CE at around Rs.25-26; SL  below Rs.10 for a target of Rs.52 - 68.....

#Buy the shares of Housing Development & Infrastructure Ltd (HDIL) at around Rs.39.9, T: Rs.45-47, SL: Rs.36..

#Those who are holding the shares of P C Jewllers Ltd can continue to add on declines, keeping a strict stop  loss at Rs.311. After demonetization and implementation of the GST, the gems and jewelry space is slowly limping back to normalcy. Also, destruction of the brand Gitanjali Gems Ltd is likely to have positive effect on the stocks of the branded jewelry companies.

~~With inputs from Capital Market - Live News...

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