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

The Indian bourses are getting sold off strangely due to American Flue. 

The BSE Sensex was last trading at 52,692.68 down a whopping 1,460.19 points (-2.80%), while the Nifty was last seen trading at 15,781.60 down a massive 444 points. But I feel the fall is absolutely unnecessary. The SEBI should look into this issue and see if it is a case of market manipulation in collusion with the media.

In another significant development in the US, a few companies have reported lower earnings because of inflation effect, and this spooked Dow Jones and Nasdaq. The companies said that they are witnessing a fall in consumer demand due to spike in inflation. Fine! However, what is important to note is that India has a domestic economy which is showing high growth. Moreover, if demand destruction is really seen in the US, this means demand - push - inflation is coming down, which is a good sign. This further means that, the US Fed will refrain from going for agressive rate hikes in the near term. Hence, today's selling in India bourses simply doesn't make any sense, especially when the FIIs are buying in the F&O Market.

#Those who have a portfolio size of Rs.1 (one) lakh (Rs.50,000 offer is Fully Subscribed and no more quota is left) can join my associate brokerage house and get my guidance to maximize your returns from the stock market investments. 

Also, if you want me to play in the stock market on your behalf, on 70:30 profit sharing basis through the #Crorepati #Scheme, it can also be done, provided you compulsory have a Trading Account in my associate brokerage house. 

That facility of having trading account of any brokerage house to avail of this facility has been removed, from this month, due to foul play by some of the participants. You may send me a mail at: suman2005s@rediffmail.com or sumanm2007s@gmail.com.

Today's recommendation: Buy the shares of Vodafone Idea Ltd near Rs.8.90/8.95 for short term targets of Rs.11/13. The company is coming with a preferential issue at Rs.13.20. Hence, it is now certain that the stock will invariably touch Rs.13/14 by September, 2022. Moreover, there are talks of government of India, taking stake in Vodafone Idea Ltd. Also, the 5G launch will further sweeten the deal. Hence, Buy the shares of Vodafone Idea Ltd near the CMP (in BULK) and keep holding. This is now the golden goose of Indian telecom sector.

#Average the shares of RBL Bank Ltd (Rs.113.75), Canara Bank Ltd (Rs.186.20), Wockhardt Ltd (Rs.269.25), Indowind Energy Ltd (Rs.15.20) and Suzlon Energy Ltd (Rs.9.10). You will benefit in the near future, from June onwards the markets is likely to show a definitive trend. 

Moreover, you should buy stocks, whose stories you know. And therefore, this kind of massive fall gives opportunity to buy good stocks at reasonable valuations, with the SIP method.

#By the way, A2Z Infra Engineering Ltd hit another Buyer Freeze at Rs.12.75. Those who have entered early should think of booking partial profits and hold the rest with a SL of Rs.12.30.

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