BREAKING-->RBI May Hike Repo Rate by 25 BPS in October!

Now, the narrative is changing. According to SBI Research, the RBI may raise the policy repo rate by at least 25 basis points at its October 5–7 Monetary Policy Committee meeting. The current repo rate stands at 5.25%. A 25 bps hike would take it to: 5.50% This would mark the first repo-rate hike since February 2023. ---->Why Is SBI Research Expecting a Rate Hike? SBI Research says the balance of risks has shifted towards tighter monetary policy because of: • Broadening inflationary pressures • Higher crude oil prices • Global macroeconomic uncertainty ---->Inflation Is Broadening SBI Research expects CPI inflation to rise to around 5.65% in September and potentially cross 6.5% in October and November before easing later. ----->Which Sectors Could BENEFIT? Banks Banks could benefit from higher lending rates, although the impact depends on deposit costs, credit demand and NIMs. Stocks to watch: •

• ICICI Bank • SBI • Bank of Baroda • Axis Bank ---->Bottom Line The biggest change isn't the 25 bps hike itself — it's the possibility that India's rate-cut cycle is turning into a rate-hike cycle. SBI Research expects the RBI to potentially raise the repo rate from: 5.25% → 5.50% at the October MPC meeting. For investors, the key themes to watch are: Banks & Financials → Potential beneficiaries, depending on funding costs Real Estate → Rate-sensitive Auto → Financing-cost sensitive High-valuation Growth → Valuation pressure risk