Indian Equities Snap Eight-Week Slide as RBI Hikes Repo Rate
· Business · LiveMint, Economic Times
Indian equities broke an eight-week losing streak as the Nifty 50 rose 1.30% to 22,520.45 and the Sensex gained 1.23% to 72,472.33 in Friday sessions. However, the modest rebound remains tested by crude oil prices climbing above $100 a barrel and a hawkish Reserve Bank of India. The RBI's monetary policy committee unanimously raised the repo rate by 25 basis points to 5.50%, marking its first increase since February 2023. The central bank also upgraded its FY27 growth forecast to 7.1% and inflation projection to 5.2%. Analysts note that while stronger growth supports corporate revenues, higher borrowing costs and energy pressures continue to weigh on market sentiment.
Why it matters
The RBI's rate hike and elevated crude prices create a challenging environment for corporate profitability and consumer borrowing costs across India.
Read the original report — LiveMint
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