Among sectoral indices, the Nifty PSU Bank index ended 0.52% higher led by IDBI Bank and Punjab National Bank, while Nifty Auto index settled 0.76% lower due to fall in Exide and Motherson Sumi.

Markets, Stocks, BSE, NSE, SENSEX

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	Benchmark indices ended lower on Wednesday after the Reserve Bank of India (RBI) raised its repo rate by 25 bps to 6.5%. The policy comes amid rising inflation and a falling rupee. The widening current account deficit in an election year is also a key monitorable for the policymakers. 
	 
	The S&P BSE Sensex ended at 37,522, down 85 points while the broader Nifty50 index settled at 11,346, down 10 points. In intra-day deals, the S&P BSE Sensex hit a fresh all-time high of 37,711.87 while the Nifty50 index touched its record high level of 11,390.55. 
	 
	Among sectoral indices, the Nifty PSU Bank index ended 0.52% higher led by IDBI Bank and Punjab National Bank, while Nifty Auto index settled 0.76% lower due to fall in Exide and&nbsp;Motherson Sumi. 
	 
	MONETARY POLICY REVIEW 
	 
	The central bank&#39;s Monetary Policy Committee&nbsp;also increased the reverse repo rate by 25 bps to 6.25%, while&nbsp;keeping a neutral stance on policy. It pegged retail inflation at 4.8 per cent for the second half of the current fiscal.&nbsp;It also kept the GDP forecast for the current fiscal unchanged at 7.4 per cent and saw it at 7.5-7.6 per cent in the second half of the current fiscal. 
	 
	This was the first time since October 2013 that the central bank hiked repo rate --- the rate at which the RBI lends to commercial banks --- at two consecutive policy meetings. 
	 
	POLICY REACTION 
	 
	The RBI policy decision does come as a surprise given that the overall inflation projections have not really changed significantly for the year being put at 4.6% in Q2 and 4.8% in H2, writes Madan Sabnavis, Chief Economist, CARE Ratings.&nbsp;The risks pointed out by the RBI still remains the same with the MSP, oil price, demand, HRA factors driving the decision to hike rates, he says.&nbsp;<a href="https://www.business-standard.com/article/economy-policy/what-rbi-policy-means-for-banks-markets-deposit-holders-key-takeaways-118080100583_1.html" target="_blank">READ MORE HERE</a></div>
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	GLOBAL MARKETS</div>
 
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	Asian shares gave up ground on Wednesday, with weak data in the region and fears of an imminent escalation in the tariff war between the United States and China pulling markets lower even as strong earnings out of the US provided some support.</div>
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	In Asia, MSCI&#39;s broadest index of Asia-Pacific shares outside Japan was down 0.1 per cent, erasing earlier gains, while Japan&#39;s Nikkei stock index gained 0.8 per cent.&nbsp;The Shanghai Composite index fell 0.8 per cent, while the blue-chip CSI300 index lost 1 per cent. 
	 
	(with wire inputs)</div>

Sensex ends 85 points lower at 37,522; RBI hikes repo rate by 25 bps

Business Standard

Sensex ends 85 points lower at 37,522; RBI hikes repo rate by 25 bps | News on Markets - Business Standard

RBI Monetary Policy 
 
Urjit Patel: Mounting trade tensions and tightening financial conditions impacted inflation

RBI Monetary Policy 
 
Urjit Patel: Need to monitor inflation uncertainty in the coming months

Inflation projection (Image source: RBI document)

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RBI Monetary Policy 
 
Urjit Patel: Monsoon progress and MSP hike and boost farm income

RBI Monetary Policy 
 
Urjit Patel: Kharif crop sowing is lower than last year

RBI on GDP growth 
 
The Reserve Bank&rsquo;s IOS indicates that activity in the manufacturing sector is expected to remain robust in Q2, though there may be some moderation in pace. Rising trade tensions may, however, have an adverse impact on India&rsquo;s exports. Based on an overall assessment, GDP growth projection for 2018-19 is retained, as in the June statement, at 7.4 per cent, ranging 7.5-7.6 per cent in H1 and 7.3-7.4 per cent in H2, with risks evenly balanced; GDP growth for Q1:2019-20 is projected at 7.5 per cent

RBI Monetary Policy 
 
Urjit Patel: Q1FY20 GDP growth seen at 7.5%

RBI Monetary Policy 
 
Urjit Patel: Input cost inflation has been firm in industrial sector

RBI Monetary Policy 
 
Urjit Patel: Capital flows to EMs have declined with firming US dollar

RBI on inflation 
 
Inflation is projected at 4.6 per cent in Q2, 4.8 per cent in H2 of 2018-19 and 5.0 per cent in Q1:2019-20, with risks evenly balanced (Chart 1). Excluding the HRA impact, CPI inflation is projected at 4.4 per cent in Q2, 4.7-4.8 per cent in H2 and 5.0 per cent in Q1:2019-20.

RBI Monetary Policy 
 
4 out of 5 votes were in favour of the rate hike decision. Only 1 vote i.e, Dr Ravindra H Dholakia voted against the decision.&nbsp;

RBI Monetary Policy 
 
RBI sees a minor increase in CPI inflation in second half of this year

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	Reserve Bank of India hikes key repo rate by 25 basis points to 6.50</div>
<div>
	 
	The Reserve Bank of India increased its key repo rate by 25 basis points to 6.50 on Wednesday, in a move that is seen as an attempt to keep inflation under check. <a href="https://www.business-standard.com/article/economy-policy/reserve-bank-of-india-hikes-key-repo-rate-by-25-basis-points-to-6-50-118080100528_1.html" target="_blank">READ MORE</a></div>

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	RBI Monetary Policy</div>
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	&nbsp;</div>
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	Risks to inflation, GDP projections seen &quot;evenly balanced&quot;, says RBI</div>

Nifty Bank falls 0.5% post rate hike

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