RBI Monetary Policy: Rate-sensitive segments in focus; experts suggest 15 stocks to buy today after a 25 bps rate cut

RBI Monetary Policy: The Reserve Bank of India (RBI) avoided disappointing the market by announcing a 25-basis-point rate cut on Friday, February 7—the first in nearly five years. The central bank cut benchmark policy rates by 25 bps to 6.25 per cent from 6.50 per cent and maintained the policy stance as ‘neutral’.

Since a rate cut was fairly discounted, the RBI’s rate cut move did not give any immediate fillip to the Indian stock market as the key indices – the Sensex and the Nifty 50- remained rangebound after the policy announcement.

However, experts believe a 25 bps rate cut is positive for rate-sensitive segments, such as automobile, realty, consumer durables and banks.

“The 25 bps RBI rate cut is on the expected lines, and the market has already discounted it. However, after this RBI Monetary Policy outcome, some rate-sensitive segments — auto, consumer durable, PSU banks, and real estate — are expected to react in the short term,” said Avinash Gorakshkar, Head of Research at Profitmart Securities.

Stocks to buy

Pankaj Pandey, the head of research at ICICI Securities, believes that in order of preference, one can consider some NBFC stocks, followed by banking stocks. After that, some rate-sensitive segments, such as automobiles and real estate, could be considered.

Bajaj Finance and Maruti Suzuki are his preferred picks from the auto sector.

Gorakshkar of Profitmart Securities said investors can look at rate-sensitive segments for short-term gains.

“In the auto segment, I would suggest investors look at listed vendor companies like JBM Auto, Rico Auto, Fiem Industries, etc., because these small-sized companies will have a sigh of relief on the working capital front after the RBI’s rate cut move,” said Gorakshkar.

“In the PSU Bank segment, one can look at Canara Bank, Bank of Baroda, Punjab National Bank (PNB), and State Bank of India (SBI). In the real estate segment, looking at mid-sized realty companies like Oberoi Realty, Sobha, etc., can be a good option. One can look at V-Guard, Havells India, Whirlpool, etc., shares in consumer durables,” Gorakshkar said.

Anshul Jain, the head of research at Lakshmishree Investment and Securities, underscored that aggressive investors could easily find discounted stocks in the small-cap and mid-cap segments as they are under immense selling pressure.

“Those looking at small-cap or mid-cap auto stocks can look at Samvardhan Motherson shares for the short term. However, those who believe in safe bets can consider Maruti Suzuki shares for the short to medium term,” said Jain.

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Disclaimer: The views and recommendations above are those of individual analysts, experts, and brokerage firms, not Mint. We advise investors to consult certified experts before making any investment decisions.