RBI rate hike 'non-event' for stocks; 2019 polls next focus for investors

RBI raised interest rates to the highest in 2 years to tackle inflation pressures in the world's fastest-growing major economy

The morning after the day before and equity strategists remain split on whether the world-beating rally in Indian stocks will continue or pause for breath after Wednesday’s rate hike.

All seem to agree that the big focus for investors now is next year’s election.

“Investors will forget the rate hike and refocus on individual companies and their outlook,” said Kishor Ostwal, managing director at CNI Research Ltd. in a telephone interview. “The fate of general elections next year will be the focus of attention.”

Indian stocks will surge to a new high as most investors are short and this quarters earnings are better