Nifty 50 and RBI MPC rate hikes: Does a rising interest rate always trigger a market correction? What history suggests

The RBI Monetary Policy Committee unanimously raised the repo rate by 25 basis points to 5.5 percent from 5.25 percent, marking the first rate hike in four years amid price pressures. The MPC also shifted its stance to 'calibrated tightening', and Governor Sanjay Malhotra indicated that rate cuts were unlikely in the near term. Following the announcement, the Sensex fell as much as 599 points (about 0.8 percent) and the Nifty 50 declined 230 points (about 1 percent) to 22,546.30. The article also analyses five historical rate-hike cycles since 2004, showing that the Nifty 50's response has varied significantly depending on underlying growth, inflation, and global conditions.