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The 25 basis points hike in key policy rate by <keyword id="30067" type="General" weightage="100" keywordseo="rbi" source="Orion">RBI</keyword> is in line with expectations, and hopefully is the last in the current cycle of rate increase which started in May 2022 in view of rising inflation, opined industry bodies and experts. It was the sixth hike in a row, though the quantum was low. The central bank has cumulatively hiked repo rate by 250 basis points since May last year in a bid to contain rising inflation in the wake of global geopolitical tensions. "There is no doubt that moderating inflation in today's challenging global environment should be a priority for the RBI-Monetary Policy Committee and the RBI has done a commendable job with the result that the pace of price rise has reversed. "In line with the other broad objective of sustainable growth, we want to believe this is the last rate hike by the RBI," said Assocham Secretary General Deepak Sood. The RBI raised interest rate by 35 basis points in December 2022. It was hiked by 40 basis points in May and by 50 basis points each in June, August and September. Commenting on the RBI policy, Madan Sabnavis, Chief Economist, Bank of Baroda said the major takeaway is that there will be a prolonged pause for sure before any further action is taken by the RBI and will be data-driven. "Presently it looks like that there is an upside risk to the inflation number and hence a rate hike could be thought of later. A rate cut during the year looks more unlikely and can be on the cards only when there is a change in stance first," he added. <keyword id="15466055" type="General" weightage="50" keywordseo="saket-dalmia" source="Orion">Saket Dalmia</keyword>, President, PHDCCI opined that the continuous increase in repo rate will have impact on consumption demand and production possibilities in factories. "As inflation has been in a significant deceleration since the last many months, we look forward a pause in the policy rates," he added. The Reserve Bank has projected retail inflation to ease to 5.3 per cent in next fiscal from 6.5 per cent this year on assumptions of lower imported inflation, even though core inflation remains sticky. Experts also said repo rate is directly linked to loan rates offered by lenders so an increase in repo will increase the borrowing cost and vice-versa. "The rate hike of 25 bps today will make EMIs expensive by approximately 2-4 per cent. Borrowers will either have to shell out extra money to repay their loans or will have to extend the loan tenure," said <keyword id="2951021" type="General" weightage="50" keywordseo="v-swaminathan" source="Orion">V Swaminathan</keyword>, Executive Chairman, Andromeda Sales and Apnapaisa.com. Since May 2022, the repo rate has been increased by 250 basis points. So, the EMI for a 20-year home loan taken in May 2022 of Rs 70 lakh at 7 per cent was Rs 54,271, he explained. "But when we factor in the 250-bps hike since May, the interest rate becomes 9.50 per cent, increasing the EMI to Rs 65,249." <keyword id="11357847" type="General" weightage="50" keywordseo="radhavi-deshpande" source="Orion">Radhavi Deshpande</keyword>, President and Chief Investment Officer, Kotak Mahindra Life Insurance Company said having front loaded most of the rate hikes, incremental policy rate decisions will largely be data and global central bank stance related. Markets would settle for a longish pause here on than expect additional tightening and reversals in short period. "We expect 10 year G-Sec to hover around 7.25-4 per cent in the short term," Deshpande said. Bhavik <keyword id="1346781" type="General" weightage="50" keywordseo="thakkar" source="Orion">Thakkar</keyword>, CEO of Abans Investment Managers too said while this will increase cost of borrowing for all types of loan, the impact on home loan borrower this time could not just be extension of home loan tenor but higher EMIs also. One of the things home loan borrowers should do is ask their lender to increase spread (difference between MCLR/RPLR for home loan companies and home loan rates offered to borrower), Thakkar said. Sumita Pillai, Chief Executive Officer of Torus Private Wealth too said the RBI move was in line with expectation. "We expect the rate hike cycle to conclude as inflation has started showing signs of moderation and RBI has a clear focus on growth going forward," Pillai said. Meanwhile, Sandeep Bagla CEO, TRUST Mutual Fund said the market is a tad disappointed as there was no change in stance from "withdrawal of accommodation" to neutral. He further said market forecasters are expecting inflation to trend lower from RBI projections. The RBI will release the minutes of the six-member Monetary Policy Committee meeting on February 22, 2023. The next meeting of the MPC is scheduled for April 3-6, 2023. SEE ALSO: <a href="https://www.businessinsider.in/finance/news/rbi-hikes-interest-rates-by-25-basis-points-to-6-5-says-core-inflation-remains-sticky/articleshow/97716217.cms">RBI hikes interest rate by 25 bps to 6.5%, says core inflation remains ‘sticky’</a> <a href="https://www.businessinsider.in/business/corporates/news/adani-transmission-reports-78-rise-in-q3-net-profit-to-475-crore-on-one-time-income/articleshow/97650165.cms">Adani Transmission reports 78% rise in Q3 net profit to ₹475 crore on one-time income</a> <a href="https://www.businessinsider.in/business/telecom/news/bharti-airtel-q3-net-profit-jumps-91-to-1588-crore-misses-estimates/articleshow/97698481.cms">Bharti Airtel Q3 net profit jumps 91% to ₹1,588 crore, misses estimates</a>

Hopefully, this is last rate hike by RBI in current cycle: Industry, experts

<ul><li>While global uncertainties tear up investor confidence, the Nifty50 has been the best performer in Asia over the last one month.</li><li>During this period, automobile, FMCG, public sector banks and real estate companies have been the most attractive stocks.</li><li>Further, analysts believe markets will move on performance of companies and sectors in the last three months and global macro conditions.</li></ul>Indian equities have been volatile in the last couple of weeks amidst rising interest rates, global inflation and re- emergence of Covid cases – especially in China. The index has managed to outperform Asian peers in the last one month, despite global <a href="https://www.businessinsider.in/finance/news/rupee-at-80-heres-how-a-falling-rupee-could-impact-indias-current-account-deficit/articleshow/92897064.cms">uncertainties hindering </a>the index movement. <table style="border-width: initial; border-style: none;" class="redcator-table-advance"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Asian markets </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">% change in last one month </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Nifty 50 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">5.69% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Sensex </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">5.28% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Nikkei 225 (Japan) </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">3.95% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Taiwan Tsec 50 Index </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-4.58% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Hang Seng (Hong Kong) </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-1.82% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Shanghai SE Composite Index (China) </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-1.21% </td></tr></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody></table> <keyword id="5935920" type="General" weightage="20" keywordseo="bulls-vs-bears" source="Orion">Bulls vs bears</keyword> Over the last one month, automobile, FMCG, public sector banks and real estate companies have been the top gainers. “We’re seeing a tussle among the bulls and bears, not only in Indian markets but globally. A decisive close below 15,900 may change the index tone again but we feel sectors like auto and FMCG would continue to offer trading opportunities on the long side. Besides, select stocks from other sectors like pharma, realty, banking and financials are also attracting decent traction,” said Ajit Mishra, VP of research at Religare Broking. Shares of metal and IT services have been shedding value significantly in the couple of weeks due to huge sell off, while traction in FMCG and automakers due to <a href="https://www.businessinsider.in/india/news/not-just-crude-gold-silver-and-even-wheat-and-edible-oil-prices-are-going-down-in-india/articleshow/92748130.cms">fall in prices of commodities like </a>crude oil, palm crude oil (one of the key raw materials for FMCG firms), edible oil, gold, wheat, are holding the fort for <keyword id="66115" type="General" weightage="20" keywordseo="nifty-50" source="Orion">Nifty 50</keyword>. “Metal and IT stocks might see some consolidation after a huge sell-off in them. FMCG and auto are gaining traction due to good earnings expectations and a fall in raw material prices in cases of FMCG companies. Metals and IT together contribute about 18% to the Nifty index whereas BFSI, FMCG, auto contribute more than 50% thus reducing the drag effect of metals and IT in the upcoming quarters,” Manoj Dalmia, founder and director at Proficient Equities Private told Business Insider India. Not to forget, sharp selling by foreign portfolio investors (FPIs) for 10 consecutive months continues to weigh on investor sentiment. In fact, FPIs have been selling Indian equities even more aggressively than what was witnessed during the 2008 global financial crisis. <a href="https://www.businessinsider.in/stock-market/news/are-we-worse-off-than-we-were-in-2008-foreign-investors-seem-to-think-so/articleshow/92598800.cms">The selloff in the last 12 months is twice </a>as much as that seen in 2008, when the sub-prime crisis hit the US, sinking banks, financial markets and more. The exodus of foreign investors has left a huge scar on the markets as <keyword id="6484188" type="General" weightage="20" keywordseo="sensex" source="Orion">Sensex</keyword> corrected nearly 8% in 2022. “On the flip side, IT and metals are still not showing any sign of reversal despite the oversold positions. Participants should align their positions accordingly and prefer a hedged approach citing the overnight risk and volatility due to the earnings season,” said Mishra. The season of earnings Further, analysts believe markets will move on performance of companies and sectors in the last three months and global macro conditions. “Markets will continue to react to global macro factors like inflation, interest rate measures, currency and commodity movement. With the start of the April-June 2022 quarter result season, we can expect stock and sector specific action over the next one month,” said Shrikant Chouhan, head of equity research (retail) at Kotak Securities. The earnings season has started on a soft tone as <a href="https://www.businessinsider.in/tech/enterprise/news/tcs-profits-grows-at-5-hit-by-salary-hikes-talent-churn-and-travel-costs/articleshow/92751245.cms">TCS disappointed investors </a>with its modest profit growth due to added cost pressures. This has set a bad mood for the entire IT pack especially its closest peers Wipro, HCL Technologies, which have lost more than 8% of its value in the last one month. Experts say that as concerns of growing inflation and recession hang over the global economy, Indian benchmark indices are projected to remain uncertain in the near term. Investors are anticipated to keep a close watch on the currency market, as the USD/INR has reached new all-time lows of 80.23. “Further, with the earnings season in full swing, market players should avoid reading too much into India Inc's numbers and instead focus on the management commentary,” said Apurva Sheth, head of market perspectives at Samco Securities. <div type="javascript" title="Custom" contenttype="Image"><cdata><![CDATA[]]></cdata></div> SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/india/news/indias-president-election-news-updates-and-result/articleshow/92947791.cms">Murmu vs Sinha: Voting begins to elect the next President of India</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/news/indias-duty-cuts-on-edible-oil-will-offset-rupee-fall-but-it-will-widen-gap-between-healthy-and-unhealthy-choices/articleshow/92947936.cms">India’s duty cuts on edible oil will offset rupee fall but it will widen gap between healthy and unhealthy choices</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/thelife/personalities/news/indias-richest-women-savitri-jindals-net-worth-ballooned-by-12-billion-in-just-two-years/slidelist/92951665.cms">India’s richest women Savitri Jindal’s net worth ballooned by $12 billion in just two years</a><a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/thelife/personalities/news/indias-richest-women-savitri-jindals-net-worth-ballooned-by-12-billion-in-just-two-years/slidelist/92951665.cms">India’s richest women Savitri Jindal’s net worth ballooned by $12 billion in just two years</a>

Nifty 50 remains the top performer in Asia despite tussle between bulls and bears

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Hopefully, this is last rate hike by RBI in current cycle: Industry, experts

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Nifty 50 remains the top performer in Asia despite tussle between bulls and bears

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