Home / Market Beat / Repo rates and Rev. Repo rates hiked. Markets swivel

Repo rates and Rev. Repo rates hiked. Markets swivel

The Reserve Bank of India (RBI) has hiked the repo rate and the reverse repo rate by 50 basis points each.

This unexpected move from the RBI, has led the markets to swivel down.

The rate at which the RBI lends money to commercial banks is called repo rate. When the repo rate increases, borrowing from the RBI becomes more expensive.

As a result all the rate sensitive stocks have seen major declines. PNB is down by 3.5%. ICICI Bank is down by 2.8%. HDFC Bank is down by 1.4%. IDFC is down by 3.5% .

Unitech has lost 2.7%, while DLF is down by 3%. Tata motors is down by 2%.

RCOM has lost 4% shedding its gains from yesterday.


 

 

Related Videos