Will RBI announce steep rate hikes? Nomura sees up to 50 bps increase by Dec, dismisses 125 bps hike fears
RBI moved higher in a monetary policy development.
28 Sept 2026 · Economic Times Markets, ET Stocks
Nomura expects the RBI to pursue a limited tightening cycle, with a possible 50 bps rate hike by December, as food and energy pressures rise but underlying inflation remains contained.
The analysis
RBI reported movement of 50 bps and 125 bps. Those are the figures as filed — what moves the price is how they sit against what the market already expected, not their absolute size.
Because the driver here is macro rather than company-specific, the read-through is to index-level positioning rather than to any single name — correlations tend to rise when the whole market faces the same signal.
Why it matters
- Rate decisions ripple straight into banks, NBFCs and every rate-sensitive sector — from real estate to autos.
- With RBI involved, this carries a regulatory dimension that can outlast the immediate market reaction.
Market context
- This is a market-wide development — its reach goes beyond any single stock.
Related coverage
RBI hikes repo rate by 25 bps: How will loans, EMIs, deposits, SIPs, investments be impacted?
Q2 Results Preview: Nifty 50 Earnings May Jump 27%; Financials, Metals, Telecom To Lead, Says Motilal Oswal
PNB, Kotak Mahindra Bank, other bank stocks rise up to 2% after RBI’s rate hike, Nifty Bank above 55,500
RBI hikes repo rate: Your FD could pay more, but bonds may take a hit. What investors should know
RBI hike reinforces stock selection, not broad equity caution: Ajit Mishra