Hike will increase finance cost for all companies especially highly leveraged infrastructure companies and real estate players
The partially convertible rupee closed at 62.51/52 per dollar compared with 63.10/11 on Monday
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The RBI governor plans to slow down demand driven non-food inflation, which it expects will result in lowering of core inflation
: RBI will be looking to reduce headline CPI to 8% by January 2015 and 6% by January 2016
Sustained inflation creates instability in market since it depreciates Rupee on REER basis
South Korean won and Taiwan dollar rise on demand from local exporters
RBI's dovish policy statement is also aiding rupee
Markets take heart from comments that RBI doesnot forsee near-term tightening if CPI eases
Say the central bank will likely hold rates in the next policy
Hike to increase finance costs to 12% on an average for large corporates
Says inflation risks likely to stay
The aim is to bring CPI inflation down to 6% by January 2015
Rupee recovers on rate hike
Rajan's outlook on direction of rates will be keenly watched
Hawkish comments by Rajan could lead to a stock selloff, say traders
Rajan is expected to strike a hawkish tone on inflation
Experts differ with Patel panel proposal of 56, 84-day term repos
Central bank hiked repo rate twice by 25 bps each in September and October last year