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RBI hikes repo rate to 5.5%, prompting calls for more bond exposure
Jefferies expects India’s tightening target to rise to 75 to 100 bps, and markets are also watching for at least two more rate hikes in FY27.
LiveMint Markets said the Reserve Bank of India raised its repo rate by 25 bps to 5.5% at the MPC meeting, with Jefferies calling the move in line with expectations but pointing to a stance change toward calibrated tightening.
According to Jefferies India, the bank lifted its monetary tightening target in India from 50 bps to 75 to 100 bps, and the report also cited expectations for at least two more rate hikes in FY27.
LiveMint Markets also relayed market commentary that tightening could pressure equities and lift government-backed bond yields, with experts recommending investors shift toward long-term government bonds starting now through November 2026, while keeping equity exposure focused on Nifty 50 and Nifty 100 ETFs rather than individual stocks.
On timing, the outlet said experts expect the Indian stock market to hit bottom only if the Nifty 50 index dips below 22,000.