RBI Rate Hike: Why Markets Fear More Rate Hikes, High Crude & Continued FII Selling

The RBI’s 25 basis points rate hike was already priced in, but markets remain worried that more hikes could follow. High crude prices above $100 a barrel, rupee depreciation, heavy FII selling and elevated bond yields are adding to investor concerns. Avinash Gorakshakar, Founder, Avinash Mentor Research, explains why the RBI commentary has raised expectations of another one or two rate hikes and how higher borrowing costs could impact home loans, banks and corporate profitability. The discussion also looks at the risk of a weak Q3 earnings season and why continued FII selling and primary market pressure could keep Indian equities under pressure.