In past there is virtually no trend as to how market reacts
to a rate cut or hike.
However, the only time the rate cut happened after a 5% or
more market rally in the preceding month was in January 2009. The market fell
3% in the month following the rate cut.
| Date | Repo cut | 1Day Return | 1M before | 1M After |
| 30-Apr-01 | -0.25 | 3% | -4% | 6% |
| 7-Jun-01 | -0.25 | 0% | -3% | -4% |
| 28-Mar-02 | -0.5 | 0% | -3% | -3% |
| 12-Nov-02 | -0.5 | 0% | -2% | 12% |
| 7-Mar-03 | -0.4 | -1% | -2% | 0% |
| 19-Mar-03 | -0.1 | 1% | -7% | -4% |
| 31-Mar-04 | -1 | 1% | -5% | 1% |
| 20-Oct-08 | -1 | 2% | -29% | -14% |
| 3-Nov-08 | -0.5 | 6% | -17% | -15% |
| 8-Dec-08 | -1 | 2% | -15% | 5% |
| 5-Jan-09 | -1 | 0% | 5% | -3% |
| 5-Mar-09 | -0.5 | -3% | -12% | 26% |
| 21-Apr-09 | -0.25 | -1% | 17% | 29% |
| 17-Apr-12 | -0.5 | 1% | -1% | -8% |
| 29-Jan-13 | -0.25 | -1% | 3% | -6% |
| 19-Mar-13 | -0.25 | -1% | -2% | 0% |
| 3-May-13 | ? | ? | 5% | ? |
| Date | Repo hike | 1Day Return | 1M before | 1M After |
| 26-Oct-05 | 0.25 | 0% | -6% | 11% |
| 24-Jan-06 | 0.25 | 1% | 4% | 7% |
| 8-Jun-06 | 0.25 | -5% | -22% | 13% |
| 25-Jul-06 | 0.25 | 2% | 2% | 11% |
| 31-Oct-06 | 0.25 | 0% | 5% | 6% |
| 31-Jan-07 | 0.25 | -1% | 2% | -8% |
| 31-Mar-07 | 0.25 | 0% | 1% | 6% |
| 12-Jun-08 | 0.25 | 0% | -9% | -12% |
| 25-Jun-08 | 0.5 | 1% | -14% | 4% |
| 30-Jul-08 | 0.5 | 4% | 6% | 2% |
| 19-Mar-10 | 0.25 | 0% | 8% | 0% |
| 20-Apr-10 | 0.25 | 0% | 0% | -6% |
| 2-Jul-10 | 0.25 | 4% | -2% | 4% |
| 27-Jul-10 | 0.25 | 0% | 1% | 1% |
| 16-Sep-10 | 0.25 | 0% | 8% | 4% |
| 2-Nov-10 | 0.25 | 0% | -1% | -2% |
| 25-Jan-11 | 0.25 | -1% | -4% | -7% |
| 17-Mar-11 | 0.25 | -1% | 1% | 7% |
| 3-May-11 | 0.5 | -2% | -4% | 0% |
| 16-Jun-11 | 0.25 | -1% | 0% | 3% |
| 26-Jul-11 | 0.5 | -2% | 2% | -13% |
| 16-Sep-11 | 0.25 | 0% | 0% | 1% |
| 25-Oct-11 | 0.25 | 2% | 6% | -8% |
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