The RBI's interest rate decision directly impacts the valuation of the Indian Rupee (INR) and the Indian stock market (e.g., Nifty 50, hedgeable via INDA ETF). An unexpected hike or cut would significantly alter capital flows, causing an immediate repricing shock for INR-denominated assets. While the primary impact is localized to Indian markets, as a major emerging economy, its policy can have minor spillover effects on emerging market indices (EEM).