RBI MPC 25 bps rate hike: Banks stocks vs NBFCs - Why Jefferies India picked SBI, ICICI Bank, Axis Bank shares
The Reserve Bank of India raised the repo rate by 25 basis points to 5.5% during its Monetary Policy Committee meeting. Jefferies India predicts this hike, along with a shift to 'calibrated tightening,' could lead to further rate increases of 75-100 basis points, favoring larger private banks like SBI, ICICI, and Axis over non-banking financial companies. Investors should watch for potential earnings boosts in these banks.