Expert Recommendations Post RBI MPC Meeting

In the aftermath of the RBI’s Monetary Policy Committee (MPC) meeting, market experts have identified five stocks as potential buys for investors looking to capitalize on the unchanged repo rate scenario. SBI, HDFC Bank, IRFC, Poonawalla Fincorp, and Bajaj Finance are the top picks suggested by analysts, despite expectations of a correction in banking and financial stocks due to the absence of cheaper money for lenders.

Assessment of RBI’s Impact on Stock Market

Anil Rego, Founder and Fund Manager at Right Horizons, emphasized that market movements post-RBI’s decision will likely hinge on upcoming earnings reports and the anticipation surrounding the 2024 elections. While investors anticipate rate cuts in 2024, Rego underscored the importance of global factors, particularly the actions of the US Federal Reserve. He predicted that the banking sector, sensitive to rate fluctuations, would continue to perform well in FY24, with NBFCs and credit-sensitive sectors also benefiting from rate cuts.

Sonam Srivastava, Founder and Fund Manager at Wright Research, echoed similar sentiments, highlighting the potential positive impact on banking stocks stemming from the acknowledgment of surplus liquidity and RBI’s liquidity management efforts. While accommodative monetary policies could bolster investor confidence, concerns over inflation and global economic risks might temper market gains.

Stock Recommendations After RBI’s Decision

Sandeep Pandey, Founder of Basav Capital, interpreted the RBI’s decision as signaling no additional liquidity for Indian lenders, potentially leading to downward pressure on banking and financial stocks. He suggested that the RBI might await the US Federal Reserve’s rate cut announcement for insights into global inflation trends. However, given the US Fed’s three rate cuts in 2024, Pandey recommended considering quality banking and financial stocks in the event of a correction.

Specific Stocks to Consider

Pandey emphasized five stocks worth considering after the RBI’s decision: SBI, HDFC Bank, IRFC, Poonawalla Fincorp, and Bajaj Finance. These selections reflect a focus on stable and reputable entities within the banking and financial sector, poised to withstand market fluctuations and capitalize on potential corrections.

Disclaimer

It’s important to note that the views and recommendations expressed belong to individual analysts, experts, and broking companies, and not Mint. Investors are advised to consult certified experts before making any investment decisions.

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Pooja Patel, an accomplished editor with a focus on finance and market trends, contributes to Atom News with a dedication to providing insightful and accurate business news. Pooja's analytical approach adds depth to our coverage, keeping our audience well-informed.