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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Photo: Indian Retail 
Yesterday, the BSE Sensex closed at 38,050.78 up 173.44 points (+0.46%), while the Nifty ended the day at 11,247.10 up 68.70 points (+0.61%). The Nifty would continue to get support near 11200/11700 ranges. We can look for at least 100 points up for Nifty in the coming days. 

#The scrip of GAIL closed at Rs.97.65, yesterday. As mentioned, a number of times earlier, all the dips should be bought into, for targets mentioned earlier. Motilal Oswal Securities has already given a target of Rs.150 for the stock. 

#The stock of V2 Retail Ltd (Rs.56.55) should be accumulated in dips for targets mentioned earlier. The festive demand ahead will keep the stock buoyant. Only that you need to advance your stop loss to Rs.51.

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Comments

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