Bank stocks have recorded sharp losses of late as investors prices in a possible RBI rate hike at the upcoming MPC meeting. Analysts, however, believe the fears may be overdone and see the current downturn as an opportunity to accumulate quality stocks in the sector.
The Reserve Bank of India (RBI) is all set to hold its Monetary Policy Committee (MPC) meeting next week from October 5 to October 7. This would mark the Indian central bank's first meeting after the US Federal Reserve increased rates earlier this month. The Fed's latest rate hike marked its first since 2023, as soaring oil prices and other uncertainties kept inflation well above its long-term target and ended a prolonged period of policy stability.
