When the RBI hiked the repo rate on 4 May and again on 8 June, the stock market was shocked. Within a week, the Nifty slipped more than 7%. But the latest rate hike on 5 August has not ruffled any feathers. The market has been chugging along happily even though the 50 basis point hike in the repo rate was higher than expected.

The stock markets may have shrugged off the rate hikes, but the bond market couldn’t escape the impact. Government bond