IRFC, Bajaj Finance to HDFC Bank — experts recommend these 5 shares to buy after RBI monetary policy meeting
Stocks to buy today after RBI monetary policy: The Reserve Bank of India (RBI) left the repo rate unchanged at 6.50 percent for the seventh straight Monetary Policy Committee (MPC) meeting. However, stock market experts look at this RBI move as an opportunity for long-term investors who want to buy banking and financial stocks.
They said that RBI leaving the repo rate unchanged means no cheaper money to the lenders, which may lead to some correction in these stocks. However, they maintained that the Indian economy is interlinked with global merchandise and the US Fed has already declared three rate cuts in 2024.
So, it seems that the RBI is waiting for the first US Fed rate cut this year for more clarity on the rate cut timeline. They advised medium to long-term investors to look at adding or accumulating these five banking and financial shares — State Bank of India (SBI), HDFC Bank, IRFC, Poonawalla Fincorp, and Bajaj Finance.
On how RBI monetary policy will impact the Indian stock market, Anil Rego, Founder and Fund Manager at Right Horizons said, "We believe markets in the near term will now be driven by the upcoming earnings season and the 2024 elections. Investors are bullish as they are favoring rate cuts in 2024 which will unanimously boost the equity markets.
The banking sector is the most sensitive to changes in rate cycles and has been a major reason for incremental earnings in FY23 and in H1 of FY24 benefitting from the hikes and credit growth being robust and persistent." "Prolonged rate cuts will eventually lead to narrowing NIM but we expect rate cuts to begin in the last quarter and hence the trend in the banking sector is likely to continue in FY24. NBFCs will be best positioned to benefit from cuts in
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