Will Reserve Bank of India rise the Interest Rate?

The Reserve Bank of India (RBI) may rise the interest rate to tame the inflation in India. It is expected that the RBI may go for another hike in the interest rate by 25 basis point on November 2nd.

The RBI also warned the rise in the food prices would put pressure on the inflation and interest rates.

Impact on Stock Market in India - Analysis : The rise in interest rate would hit the stock market in India.

Any increase in the interest rate would first have impact on the banking sector so as the banking index or banking shares in India.

The next week stock market trade would be slow or the stock market indexes may dive and look in red. Investors might try to pull out from the banking stocks; if there was any change in the interest rate by the RBI.