More rate hikes, eye on rupee: How experts interpret RBI's 50-bps rate hike

The reluctance of the RBI to change stance from 'withdrawal of accommodation' indicates that more monetary policy tightening is likely to be in the pipeline, analysts said

The Reserve Bank of India (RBI) governor, Shaktikanta Das', reiteration that the Indian economy remains resilient in the face of a third global shock, boosted investor sentiment on Dalal Street. Besides, the Monetary Policy Committee’s (MPC’s) 50-basis point (bps) rate hike, in-line with expectations, cheered investors. 
 

The benchmark S&P BSE Sensex soared 552 points soon after the policy announcement, while the Nifty50 gained 149 points. Track LIVE market updates

That said, experts believe the financial markets could be heading towards uncertain times ahead as the strong domestic fundamentals will face headwinds from the global environment, which may have