Interest rate cuts could be a catalyst for these five growth stocks
Subscribe to enjoy similar stories. When central banks like the Reserve Bank of India (RBI) reduce interest rates, borrowing becomes cheaper. Companies can then access loans at lower costs, enabling them to invest in new projects, expand operations, or fund innovation more effectively.
Lower interest rates also boost consumer spending, as individuals pay less on their loans and have more disposable income to purchase goods and services. The RBI has held the repo rate steady at 6.5% for a while now. However, with inflation pressures easing, rate cuts could be on the horizon.
Growth stocks, particularly those with strong expansion potential, stand to benefit the most from a low-interest-rate environment. Reduced borrowing costs allow these companies to scale faster and make substantial investments aimed at achieving higher future profits. These companies often rely heavily on debt to fuel their growth.
With a potential shift in monetary policy by the RBI, it’s worth examining the top growth stocks in India and their positioning for 2025. These stocks are filtered using Equitymaster’s Powerful Stock Screener. Founded in 2014, Swiggy Ltd is a leading online food delivery and hyperlocal commerce platform in India.
Its unified app offers services such as food delivery, quick commerce, and supply chain solutions, underscoring its consumer-first approach and diversified business model. Swiggy is currently expanding its quick commerce segment, Instamart, which delivers groceries through an expanding network of dark stores. By 2025, the company plans to double its dark store area to meet growing demand.
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