The Reserve Bank of India Monetary Policy Committee (RBI MPC) has unanimously decided to keep the repo rate unchanged at 5.5 percent, while retaining the policy stance as neutral. The central bank wants to continue to observe the impact of previous policy actions and the recent fiscal measures (including GST, tax cuts) before charting the next course of action, though there has been a significant moderation in inflation.
The RBI revised its full-year growth estimate upward to 6.8 percent (from 6.5 percent earlier), supported by domestic drivers and likely further support from a favourable monsoon, despite weak external demand. However, it lowered the growth projection for Q3FY26 (to 6.4 percent from 6.6 percent earlier), Q4 (6.2 percent from 6.3 percent), and Q1FY27 (6.4 percent from 6.6 percent), especially due to trade-related uncertainties.
"There has been a significant moderation in inflation. Moreover, the prevailing global uncertainties and tariff-related developments are likely to decelerate growth in H2:2025-26 and beyond. The current macroeconomic conditions and the outlook have opened up policy space for further supporting growth," the RBI said.
The central bank has lowered its retail inflation estimate to 2.6 percent (from 3.1 percent earlier) for FY26, and also for Q1FY27 to 4.5 percent (from 4.9 percent).
"MPC’s decision on the repo rate and policy stance was largely in line with expectations, but the underlying message has significant implications for markets, liquidity, and the broader economy," said Anil Rego, Founder and Fund Manager at Right Horizons PMS.
He believes the downward revision of the FY26 CPI inflation forecast reflects growing confidence that price pressures are well-anchored, aided by recent GST rationalization and easing input costs. This creates room for further monetary accommodation later, potentially as early as the December meeting, he said.
The Bank Nifty staged a strong performance after the RBI policy decision, rising more than 1 percent to 55,251 at 12:41 hours IST, extending gains for the third consecutive session.
This lent strong support to the benchmark indices, with the Nifty 50 climbing 156 points to 24,767 and the Sensex rising 524 points to 80,791 after witnessing a fall in the previous eight sessions.
"For markets, the status quo was largely priced in, but the tone of vigilance suggests rate cuts are unlikely before late 2025 or even 2026," said Sonam Srivastava, Founder and Fund Manager at Wright Research PMS.
According to Sonam, equities should take comfort in policy continuity. "Rate-sensitive sectors like autos, real estate, and financials could benefit at the margin, but the real drivers for the next leg of the rally remain global liquidity trends and corporate earnings momentum," she said.
Moneycontrol collated a list of the top 10 rate-sensitive stocks, curated by experts with a 3–4-week perspective on the basis of the closing price of September 30, following the Reserve Bank of India's decision to maintain the status quo on rates.
Ashish Kyal, CMT, Founder and CEO of Waves Strategy Advisors
Bank of Baroda | CMP: Rs 258.55
In Tuesday’s session, the PSU Banking sector managed to outshine the other sectors. Among them, Bank of Baroda was one of the top gainers, supported by a surge in volumes.
On the daily chart, Bank of Baroda has already given a breakout from the triangle pattern and has also retested it, suggesting buying pressure from the trendline support. Along with this, as per the three candlestick rules, the trend is on the positive side as the high is above the prior day’s high, the low is above the prior day’s low, and the close is above the prior day’s high, which keeps the overall bias on the bullish side.
A decisive break above Rs 260 levels could lead to a trending move towards Rs 271, followed by Rs 285 levels.
Strategy: Buy
Target: Rs 271, Rs 285
Stop-Loss: Rs 249
Vatsal Bhuva, Technical Analyst at LKP Securities
Bank of India | CMP: Rs 123.41
Notably, the PSU Bank index has shown strong performance despite the choppy market conditions in the previous session. Among stocks, Bank of India stands out with a bullish candlestick closing and a rounding pattern on the charts, closing above its resistance levels. Futures data reflect a long buildup for two sessions, and a breakout above Rs 125 could trigger momentum toward Rs 140. Immediate support lies at Rs 118, while resistance is placed at Rs 125.
Strategy: Buy
Target: Rs 136
Stop-Loss: Rs 119
DLF | CMP: Rs 713
Real estate, being one of the rate-sensitive sectors, has seen notable moves, with DLF witnessing a steep fall from Rs 793 levels, which had earlier acted as a supply zone. The stock found support near Rs 710 levels, where positive divergence on the daily chart and extended positive divergence on the hourly chart suggest a pullback swing. RSI also signals bullish momentum with a crossover. Technically, a rebound towards Rs 750 levels is possible, aligning with the 20-day zone and Fibonacci retracement. Key support lies at Rs 700, while resistance is placed at Rs 750.
Strategy: Buy
Target: Rs 750
Stop-Loss: 699
Vidnyan Sawant, Head – Research Desk at GEPL Capital
Canara Bank | CMP: Rs 123.71
On the monthly scale, Canara Bank is witnessing a breakout from a large Cup and Handle pattern that has been forming since the 2010 swing top. This highlights a strong structural setup on the higher timeframes. The breakout in the current market environment further underscores the stock’s high relative strength. Additionally, the momentum indicator RSI is sustaining above the 60 mark across multiple timeframes, reinforcing the continuation of bullish momentum.
Strategy: Buy
Target: Rs 134
Stop-Loss: Rs 118
Cholamandalam Investment and Finance Company | CMP: Rs 1,610.8
Cholamandalam Investment has been forming a sequence of higher tops and higher bottoms, indicating a sustained upward trajectory. The stock continues to trade firmly above key short- and medium-term moving averages, namely the 20-week and 50-week EMAs, reflecting the strength of the prevailing trend. On the daily scale, it is developing a base pattern, showcasing constructive structural development. Meanwhile, the RSI indicator is approaching the 60 level, signaling improving momentum.
Strategy: Buy
Target: Rs 1,788
Stop-Loss: Rs 1,530
Riyank Arora, Technical Analyst at Mehta Equities
Bajaj Finance | CMP: Rs 998.9
Bajaj Finance has retested its breakout price and is holding well above its earlier consolidation area, indicating strength in trend continuation. It is holding above its previous all-time highs backed by a visible spike in volume, indicating active institutional buying. RSI (14) at 59 is up and indicating a pick-up in momentum without going into an overbought zone, creating space for more upside. Price action shows a healthy risk–reward setup with higher highs and higher lows intact. Provided the Rs 950 stop price is honoured, the stock is capable of moving towards the Rs 1,100 level in the near term.
Strategy: Buy
Target: Rs 1,100
Stop-Loss: Rs 950
State Bank of India | CMP: Rs 872.45
SBI sustains its bullish momentum, validating a breakout from a rising wedge formation and holding above important resistance areas. Strength in momentum is evident from heavy volume activity as well, which is confirming this breakout. RSI (14) stands at 69, which is a good indication of strong momentum and is near its overbought region, but this price structure is indicating strength and not exhaustion.
It is a good sign that this stock is sustaining above the breakout area, boosting continuation chances to around Rs 950. Any dip towards immediate support is a healthy consolidation sign, and that all-important figure of Rs 840 must be held to keep the overall bullish stance intact.
Strategy: Buy
Target: Rs 950
Stop-Loss: Rs 840
Anshul Jain, Head of Research at Lakshmishree Investments
Shriram Finance | CMP: Rs 616.1
Shriram Finance is showing an interesting technical setup that could excite traders. Over the past 24 days, the stock has formed a small cup-and-handle pattern, a classic bullish signal. Currently, it is making a higher low and edging closer to the neckline at Rs 640. A breakout above this level would not just confirm short-term strength but also open the gates for a bigger move. That’s because the stock is also tracking a larger cup-and-handle pattern, with its neckline around Rs 715. A move past that zone could unlock significant upside potential and attract strong market participation.
Target: Rs 715
Stop-Loss: Rs 600
Axis Bank | CMP: Rs 1,131.6
Axis Bank is showing strength after filling its gap at Rs 1,154 and is now forming a higher low while retesting its previous swing high. A breach and sustained move above Rs 1,171 will confirm this higher low pattern, signaling fresh bullish momentum. If that happens, the stock looks poised to head toward Rs 1,240 levels in the near term. Volumes are steady, with higher activity on up days, which is a strong sign that buyers are supporting the move and helping the rally sustain further.
Strategy: Buy
Target: Rs 1,240
Stop-Loss: Rs 1,100
HDFC Bank | CMP: Rs 951
HDFC Bank is displaying a strong technical setup with a triple bottom forming around the Rs 942 zone. The stock is showing follow-through strength after a Doji candle appeared two sessions ago, signaling a potential reversal. Importantly, volumes are tapering off on each round of selling, a clear sign of seller exhaustion. If the stock manages a sustained move above Rs 955, it will confirm bullish intent and open the path for a rally toward Rs 1,000–1,020 levels in the near term, offering traders a promising upside opportunity.
Strategy: Buy
Target: Rs 976
Stop-Loss: Rs 930
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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