India stocks fall as RBI hikes repo rate to 5.5%, flags inflation risks

1% FY2027 growth forecast Titan fell after analysts flagged weaker-than-expected September-quarter jewellery growth (Updates for markets close) By Bharath Rajeswaran Oct 7 (Reuters) — Indian shares snapped two days of gains on Wednesday after the central bank raised interest rates and shifted its policy stance to "calibrated tightening", underscoring inflation risks from high oil prices and tighter global monetary policy. 5%, its first increase since February 2023. 7. 7% before the decision.

The rupee weakened to a five-month low against the dollar and bond yields rose after the policy announcement. "For equities, RBI's rate hike marks a subtle but important shift, the easy valuation tailwind from lower rates is beginning to fade and earnings will increasingly have to justify valuations," said Rishabh Nahar, partner and fund manager at Qode Advisors. Fourteen of the 16 major sectors fell. 6%.

7% before the RBI decision. 1% and 1%, respectively. "Banks could see support to margins, since loan rates reset faster than deposit costs, and short-end bond yields are likely to rise," said Thomas J Priju, portfolio manager at Karma Capital. The absence of further liquidity tightening also eased concerns over funding costs and margins for financials, analysts said.

1% growth forecast for fiscal 2027. 8%, respectively. 3%, tracking weaker global prices as a firmer dollar made commodities costlier for overseas buyers. 8% after analysts flagged weaker-than-expected jewellery growth in the September quarter.

3% to $102 a barrel on lingering risks to US output and Houthi attacks on Saudi Arabia. com; +91 9769003463;)