What happens to market if RBI hikes price ?

Dear All, as many of you know I don't have knowledge about market, so I would like to understand some relationship of market with RBI.

What happens to NIFTY and SENSEX if RBI hikes price ?

Please guys discuss here with me about this topic, I am very much interested to understand market relationship, to take my own dicision in my next trade.

- trade_beginner

Interest rates hike makes money more costly, thus makes doing business more costly. The stock market is a reflection of business and anything that harms business will bring it down.

The market is supposed to fall when interest rate is hiked. But the market never does what is expected of it. If you want to learn all these details, learn economics, if you have no formal training in it, learn economics from khan academy, its a website.

Hope I helped.

Good one. Keep up your good work. Thanks.
Also export oriented stocks should surge. IT & pharma right.

No that happens when rupee is depreciated, as IT & pharma cos derive most of their profits in dollar. A cheaper rupee makes indian goods a better alternative so export increase. Anything that has a rest of world factor and net factor income from abroad will profit from a drop in rupee.

High interest rate is NEVER good for business and results in closing of business and people consume less and save more due to more return they get on investment. This also serves the fact that as FD which is relative to interest rate, it replaces the stock market as an investment vehicle, imposing further selling pressure on the market.

Thank you so much Mr.G, some people told me that if there is a hike in rates, then definately market will crash and it will come down, but you are telling market never does what is expected of. I am confused .

Indeed, you must be confused. After all, at any given point in time, there are almost sizeable no. of bears who expect the market to come down, and similar no of bulls who expect the market to rise. If the market always acts unexpectedly, you have to be confused about whose expectations the markets is living upto. The pigs, may be?

If you are so confused with this, wait till you start looking at fixed income security prices. Youll get such a head ache that you get sick.

I have a huge migraine today, studying senior securities with speculative features.

Learn economics, and spend time studying market theory AND always pay attention to what bunny says.

Ha ha ha. Thanks.

pigs :clap:

When RBI announces interest rates ...the bulls and bears make money and pigs(Retail traders) lose money...

Bulls and Bears don't care about what kind of news it is(intraday)

Fundamentals come into play on Weekly/Monthly charts only...