New Delhi. The Monetary Policy Committee (MPC) of the Reserve Bank (RBI) on Friday announced a 50 basis point increase in the policy interest rate amid rising inflation and a weakening Indian rupee. Now the repo rate has increased to 5.40 percent. After this increase, the repo rate has reached the pre-covid level. This is the third consecutive hike by RBI. Prior to this, the RBI has increased the aggregate by 0.90 percent in May and June. This means that the repo rate has increased by 1.4% in the last four months.
Why was the decision to increase the repo rate taken?
Reserve Bank Governor Shaktikanta Das said that the Indian economy has naturally been affected by the global economic situation. We are going through the problem of high inflation and our financial market has also been volatile. Keeping these things in mind, the Monetary Policy Committee has decided to increase the repo rate. The focus of the RBI is to bring the rising inflation under control, keeping this in mind, it has increased its rates.
At the same time, a recent poll conducted by Reuters among foreign exchange strategists also concluded that the repo rate can be increased by at least 0.35 percent in the RBI policy coming on Friday.
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Rates will increase in the coming time
This decision of RBI also indicates that RBI may increase rates in the coming days as well. Regarding this, Upasana Bhardwaj of Kotak Mahindra Bank says that looking at the current situation, it seems that by December 2022, the RBI can increase the repo rate to 5.75 percent.
At the same time, former World Bank economist Kaushik Basu said that the RBI’s 50 basis points increase in the repo rate is a good move, but with wholesale price inflation 15.18% and consumer inflation 7.01%, small businesses in India are running in losses and are closing. This may be good for big businesses but not good for the country. To fix this, we need fiscal policy.
what is repo rate
Just as people pay interest by taking money from banks for their needs, similarly all banks take loans from RBI. The rate at which RBI gives loans to banks is called repo rate. The rate at which banks pay interest to RBI on this loan is called repo rate.
Here today we will tell you about 10 stocks which can give you 10 to 12 percent return in next 3-6 months. Let us also tell you that this return has been calculated on the basis of closing price of 4th August 2022.
Top Shares by Ajit Mishra of Religare Broking
Federal Bank : LTP (Last Traded Price of the Stock) Rs 107.95 – Buying can be done in this stock up to Rs 126 with stop loss of Rs 98. This stock can show a rise of up to 17 percent in the next 3-6 months.
Eicher Motors : LTP Rs 3,145.80 – Buy this stock with a stop loss of Rs 2,850 with a target of Rs 3,500. This stock can grow by 11% in 3 to 6 months.
Top Picks of Vinay Rajani of HDFC Securities
Muthoot Finance : LTP Rs 1,101.3 – Buy this stock with a stop loss of Rs 1,060 with a target of Rs 1,165-1,210. In 3-6 months, this stock can show a rise of 6-10 percent.
Brigade Enterprises: LTP Rs 515.35 – This stock can be bought with stop loss of Rs 490 and target of Rs 550-580. In 3-6 months, this stock can show a rise of 7-12 percent.
ICICI Prudential Life Insurance – LTP Rs 560.15 – Buying advice in this stock with a stop loss of Rs 530, target of Rs 605-640. This stock can grow by 8-14 per cent in 3-6 months.
Top picks of Anand Rathi’s Jigar S Patel
Phoenix Mills: LTP Rs 1,281 – Buy this stock with a stop loss of Rs 1,200 and target Rs 1,480. This stock can show a rise of up to 15 percent in 3-6 months.
IndusInd Bank : LTP Rs 1,050.20 – This stock can be bought with a stop loss of Rs 1,100 with a target of Rs 950. In 3-6 months, this stock can show a rise of up to 9.5 percent.
Mahindra & Mahindra Financial Services: LTP Rs 194.85 – Buying advice is given in this stock with a stop loss of Rs 180 and target of Rs 220. This stock can show a rise of up to 13 percent in 3-6 months.
Rupak Day Top Shares of LKP Securities
AU Small Finance Bank: LTP Rs 636.6 – Buy AU Small Finance Bank with stop loss of Rs 569 and target Rs 776. This stock can give a return of 22 percent in 3 to 6 months.
Tata Motors: LTP: Rs 468.9 – Buy Tata Motors with a stop loss of Rs 438 and target Rs 530. This stock can give a return of 13% in 3 to 6 months.
(Disclaimer: The stocks mentioned here are based on the advice of brokerage houses. If you wish to invest in any of these, please consult a Certified Investment Advisor first. News18 is not responsible for any profit or loss caused by you. Will happen.)
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Tags: RBI, Share market
FIRST PUBLISHED : August 06, 2022, 06:55 IST
