Analysts are expecting the Reserve Bank of India to increase the repo rate by 25 bps at the August 1 monetary policy meet due to high inflation and rupee concerns. Apart from the indices, shares from rate sensitive sectors such as banks, automobiles and FMCG will be in focus. If the RBI presses the pause button, there may be a momentary rally in these stocks. However, analysts will closely track the tone of the RBI and the minutes of the meeting, whether its stance is hawkish or dovish?

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