India Inc's capex costs to shoot up as RBI hikes repo rate by 50 bps

The biggest losers would be the rate-sensitive real estate and two-wheeler sectors, which may see demand coming down

Indian companies that are planning to invest thousands of crores of rupees in ramping up their capacities are staring at the prospect of higher costs of funds with the Reserve Bank of India (RBI) hiking the repo rate by 50 basis points on Friday.

After a two-year lull due to the Covid-19 pandemic, many firms have accelerated their capital expenditure plans. Conglomerates like Reliance Industries (RIL), the Tata group, Birlas, Adanis, and Jindals are investing heavily in sectors such as renewable energy, cement, and paints. Reliance and Bharti Airtel, the biggest players in telecommunications, are planning the roll-out of 5G