While it lowered the repo rate by 50 Basis points (BPS), the third cut in a row, front-loading them on the back of softening inflation, it also also also also a 100 bps cut in the Cash Reserv Ratio (CRRR) The mpc also decides to change the policy stance to ‘Neutral’ from ‘Accommodative’, RBI Governor Sanjay Malhotra Announced in his Monetary Policy Speech.
RBI June mpc meeting: impact on sector
D-Street Experts Said RBI’s Shift in Policy Stance from ‘Accommodative’ to ‘Neutral’ Sugges a more balanced and cautious Approach Going-SUPPORTING GOROWTING GRON WHILE SILE SILE SILE SHAIPING Infration Check. “Sector like real estate, automobiles, and msmes, which are particularly sensitive to interest rate movements, Stand to Benefit Significantly from this Move,” Said Suresha Darak, Founder, Founder, Founder, Founder, Founder, Founder, Founder, Founder, Founder, Founder, Founder,
According to brokerage, the softening inflation trends which are expected to remain without The RBI has also revised its inflation forecast for26 downwards to 3.7% vs. 4% Earlier, While MainTaining Its GDP Growth Forecast at 6.5% for FY26.
“Another Surprise Came in the Form of a CRR CUT of 100 BPS in Four Tranches, Effective from Sep’25, Should Provide Further Further Liquidity Boost. H2FY26, Characterized by the Festive Season. 2.5 Lakh Crore to the Banking System by Dec’25. We view this as a positive development for banks, “said Axis Securities.
Stocks to buy after RBI MPC meeting
At present, domestic brokerage including Axis Securities Prefer Banks with Promising Growth Prospects, Healthy Deposit Franchies, Stable Asset Quality Metrix, and Stable Asset Quality Metrix, and Strong and STEDY MANAGEMENT TEAMANGMENT TEAMS
“From a banking sector percent, the pick-up in credit growth which has been subdued as banks exit fy25 remains public. Interest rates, expectations of a strong monsoon, consumption boost from the tax rate cut and potential recover in demand for the unsecred segments as stress subsides, “Said Naveen Kulkarni, Chaifeen Kulkarni Officer, Axis Securities PMS.
“Asset Quality Concern appears to be steadily waning with unsecured segment stress showing gradual signs of stability, while the second segment asset Quality continues to all Continue to prefer the larger private banks and our picks would be HDFC Bank, ICICI BANK and Kotak Bank Amongst the larger private banks and rights union bank amonst the mid-sized banks, “Added kulkarni.
Here are the top stock picks:
Private Banks – HDFC Bank, Kotak Mahindra Bank, ICICI Bank, City Union Bank, AU Small Finance Bank, And Ujjivan Small Finance Bank
PSU Banks – SBI, Bank of Baroda, and Canara Bank
NBFCs – shriram Finance, Cholamandalam Inv & Finance, Bajaj Finance and SBI Cards.
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