RBI's 25 bps rate hike trimmed Sensex and Nifty losses, prompting expert investor guidance.
Context
What happened: The RBI MPC unanimously raised the repo rate by 25 basis points to 5.5% from 5.25%, its first hike in four years, and changed its stance to calibrated tightening. Sensex and Nifty trimmed losses after falling intraday.
Key numbers: Repo rate 5.5%, up 25 bps. SDF 5.25%. MSF and bank rate 5.75%. Sensex fell 599 points, or 0.8%, to 72,468.72.
Why it matters: Analysts said the hike was already priced in, and the stance plus growth-inflation view matter more. Rising US yields and a stronger dollar make the hike important for limiting capital outflows and supporting the rupee.