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...
WINNING STROKES
#The stock of Reliance Infrastructure Ltd which was recommended yesterday at around Rs.422,
reached the 1st target of Rs.437 (intraday high of Rs.437.55) before closing at Rs.431.60 in the NSE. If the market remains buoyant tomorrow then we can look for targets of Rs.441-447-452 tomorrow. The company has an order book of more than Rs.5000 and is on the verge of becoming debt free.

#The scrip of Inox Wind Ltd recommended today at around Rs.108, made an intraday high of Rs.113.45, before closing at Rs.111.25 up 2.72%. According to some analysts after receiving a shock post budget, the wind energy sector is likely to stabilise in 2018 and fully recover in 2019. Therefore, try to sit on the train before it is too late.

#The share of P C Jewellers Ltd today made an intraday high of Rs.331.90 before closing at Rs.323.65. Those who have bought the share at higher price can average at the current levels, for targets of Rs.337-341.

#The stock of Steel Authority of India Ltd was recommended today at around Rs.71. The stock made an intraday high of Rs.74.20, before closing at Rs.73.20. We can look forward for targets of Rs.82-87, in the coming days.

#The stock of 3i Infotech Ltd closed flat today at Rs.5.05. The investors can do well to buy the scrip at every decline and keep holding.

#The Nifty has given a break out above 10150, the next targets for the Nifty are 10260 followed by 10430 and 10565.

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