The Reserve Bank of India Monetary Policy Committee (RBI MPC) on August 6 has decided unanimously to keep the repo rate unchanged at 5.5 percent, and retained the policy stance as 'neutral', citing benign inflation, robust growth, and evolving tariffs uncertainties. This decision follows a cumulative 100 bps rate cut earlier this year and a 25 percent tariff threat on Indian exports by US President Donald Trump.
The impact of the 100 bps rate cuts since February 2025 on the economy is still unfolding in the credit markets and the broader economy, hence, the MPC resolved to maintain a close vigil on the incoming data and the evolving domestic growth-inflation dynamics to chart out the appropriate monetary policy path, the central bank said.
"Market participants are likely to view this as a positive signal. A dovish inflation outlook, resilient growth, and policy continuity—without surprise—create a supportive backdrop for equities, especially domestic cyclical sectors," Anirudh Garg, Partner and Fund Manager, at INVasset PMS said.
According to him, this policy reflects balance—not complacency, suggesting India is entering a phase of monetary stability with an eye on strategic flexibility, rather than immediate intervention.
The central bank has lowered its full year inflation outlook further to 3.1 percent from 3.7 percent earlier, and also for Q2 and Q3FY26, driven mainly by lower food inflation that entered deflationary territory in June. However, it believes the CPI inflation is likely to edge up above the 4 percent target from Q4 onwards.
"Core inflation has been rising steadily from the recent low of 3.6 percent recorded during December-January FY25 and averaged 4.3 percent in Q1FY26," the RBI said.
Meanwhile, the central bank retained its full year economic growth forecast at 6.5 percent given the above normal southwest monsoon, lower inflation, rising capacity utilization and congenial financial conditions, though prospects of external demand remain uncertain amidst ongoing tariff announcements and trade negotiations.
The growth is expected to see some pick-up in the coming festive season, it believes.
According to Sonam Srivastava, Founder and Fund Manager at Wright Research PMS, the markets are starting to price in a pivot later this year, especially if food inflation eases and global financial conditions soften. She believes rate cuts may materialize in late Q4 FY26, not before.
On the equity front, this stance reinforces a case for being selective, with a tilt towards domestic cyclical themes such as financials, industrials, and consumption, which stand to benefit from eventual monetary easing and potential fiscal stimuli ahead of the 2026 elections, she said.
After the policy decision, the Nifty 50 was quoting at 24,608, down 41.5 points while nicely defending its previous week's low. The BSE Sensex declined just 20 points to 80,690 at 12:50 hours IST.
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Moneycontrol collated a list of the top 10 rate-sensitive stocks, curated by experts with a 3–4-week perspective, following the Reserve Bank of India's decision to maintain the status quo on rates.
Rajesh Bhosale, Technical Analyst at Angel One
Mahindra and Mahindra | CMP: Rs 3,212
Since September, M&M's price had been consolidating within a broad range. However, a recent breakout has seen the stock sustain above those levels. Notably, while the broader markets have been under pressure in recent weeks, this counter has displayed relative strength and even outperformed its major peers, with prices comfortably trading above all key moving averages.
On the indicator front, the RSI (smoothed) is holding above the 60 mark across all major time frames, signaling strong momentum across the board. Hence, we recommend buying M&M around Rs 3,212 - Rs 3,200.
Strategy: Buy
Target: Rs 3,550
Stop-Loss: Rs 3,040
L&T Finance | CMP: Rs 204
L&T Finance had a stellar run in June, triggering a long-awaited long-term breakout after more than 8 years. July turned out to be a breather with a consolidation phase. However, with the start of the new month, prices appear to be back in action, hinting at the beginning of a fresh leg of the upmove.
Volume analysis supports this view: the rally was backed by strong volumes, while the recent pullback occurred on relatively lower volumes, with prices retracing to short-term moving averages — indicating healthy accumulation. Momentum oscillators also remain in the positive zone, reinforcing the bullish outlook. Hence, we recommend buying L&T Finance around Rs 204 - Rs 200.
Strategy: Buy
Target: Rs 229
Stop-Loss: Rs 193
Indian Bank | CMP: Rs 635
While the broader banking space has struggled over the past couple of months, Indian Bank has shown relative strength by consistently holding above its multi-month bullish breakout levels. In recent sessions, prices have rebounded sharply after testing key support zones, signaling a potential resumption of the primary uptrend.
A multi-timeframe analysis reveals that the Monthly and Weekly RSI remain firmly above 80, while a dip in the Daily RSI towards 40 presents a buying opportunity within the prevailing uptrend. Hence, we recommend buying Indian Bank around Rs 635 - Rs 630.
Strategy: Buy
Target: Rs 700
Stop-Loss: Rs 597
Om Mehra, Technical Research Analyst at Samco Securities
Axis Bank | CMP: Rs 1,070.80
Axis Bank continued to remain under pressure after slipping from its late-June peak of Rs 1,247. The decline has extended, with the stock slipping below key short- and medium-term averages, including the 20-day, 50-day, and 200-day SMAs.
Recent candles reflect attempts to stabilize near Rs 1,050–1,070, but the recovery lacks decisive strength. The Supertrend resistance stands overhead near Rs 1,107, and price action remains capped below it.
The daily RSI has climbed slightly to 31 from sub-25 levels seen last week, but still reflects weak underlying momentum. The MACD remains in negative territory; the signal and MACD lines have not crossed, and the histogram continues to print red bars — suggesting a lack of reversal strength.
Price action over the last few sessions has been marked by small-bodied candles, narrow ranges, and lower volumes compared to the late-July breakdown phase — indicating that sellers are pausing, but buyers are not yet in control.
The last significant volume uptick came during the breakdown on July 18, and follow-through activity has been muted since then.
Sustaining above Rs 1,050 is crucial to prevent further weakness. A breakdown below this level could expose the stock to a slide toward Rs 1,020 or even Rs 1,000, which aligns with prior swing support levels and psychological round figures.
On the upside, any sustained move above Rs 1,115–1,125 with volume confirmation would be the first sign of a potential rebound. Only then can one anticipate a gradual retracement toward the Rs 1,150–1,200 zone in the coming weeks.
Strategy: Buy
Target: Rs 1,150, Rs 1,200
Stop-Loss: Rs 1,050
Godrej Properties | CMP: Rs 2,114.80
Godrej Properties is currently trading near a crucial demand zone, which also coincides with the 0.382 Fibonacci retracement level drawn from the major swing low of Rs 1,005 to the peak of Rs 3,999 on the weekly chart — adding strong confluence to this area.
Notably, the stock is also hovering near its 200-week exponential moving average (WEMA) — a level that has historically acted as a springboard for price rebounds.
Structurally, the stock continues to move within an upward-sloping channel, suggesting sustained accumulation and a potential base-building scenario at current levels.
From a momentum perspective, the RSI on both weekly and monthly timeframes remains above the 40 mark, indicating that the stock is not in a bearish trend but rather maintaining a sideways-to-slightly bullish bias.
Investors may consider accumulating Godrej Properties around the current market price, with a stop-loss of Rs 1,890, targeting Rs 2,400 in the medium term.
Strategy: Buy
Target: Rs 2,400
Stop-Loss: Rs 1,890
Bajaj Finance | CMP: Rs 891.90
Bajaj Finance is currently in a consolidation phase after undergoing a mild corrective move from the Rs 970 zone. The stock has been hovering just above its recent swing low of Rs 870, where it has managed to hold ground for the last few sessions, hinting at an early-stage base formation.
However, the short-term outlook remains tentative until it reclaims its key moving averages. The stock is trading below the 20-day and 50-day SMAs, placed at Rs 916 and Rs 922, respectively. Price action is compressed below these levels, forming narrow-bodied candles.
The RSI has rebounded to 41 from oversold territory but remains below its signal line (46), suggesting that momentum is attempting to stabilize but hasn’t reversed yet. The MACD remains in negative territory, with a slight narrowing in the histogram, indicating a possible shift in trend — but no confirmation so far.
Volume participation remains moderate, with no significant spike to confirm strong accumulation. The Bollinger Bands have started to contract, signaling reduced volatility and potential for a directional breakout ahead.
Holding above Rs 870 will be important to preserve the emerging support. A sustained close above Rs 920 would mark a reclaim of the 20-day SMA and potentially trigger fresh upside toward the Rs 950–970 zone.
On the downside, a breach below Rs 865 could extend the corrective leg toward Rs 840, the next visible horizontal support from the March–April price action.
The broader trend remains intact as long as the stock holds above key medium-term support levels.
Strategy: Buy
Target: Rs 950, Rs 970
Stop-Loss: Rs 865
Vidnyan Sawant, Head of Research at GEPL Capital
TVS Motor Company | CMP: Rs 2,983.2
TVS Motor has exhibited robust outperformance on the weekly chart, breaking out of a base formation and a 16-week consolidation zone, signaling a strong continuation of its uptrend. On the daily timeframe, the stock remains firmly above its key 12-, 26-, and 50-day EMAs, indicating sustained strength. The MACD has shown a bullish crossover. The stock recently registered a new all-time high, further reinforcing the prevailing bullish momentum.
Strategy: Buy
Target: Rs 3,342
Stop-Loss: Rs 2,834
SBI Life Insurance Company | CMP: Rs 1,857
SBI Life Insurance has been displaying relative strength for the past three consecutive months. A long lower wick candlestick near its 5-month EMA indicates renewed buying interest at support. On the weekly chart, the stock has remained rangebound for six weeks, suggesting consolidation. On the daily timeframe, a bullish mean reversion from the 50-day EMA highlights positive price development and the potential for a breakout.
Strategy: Buy
Target: Rs 1,990
Stop-Loss: Rs 1,785
RBL Bank | CMP: Rs 265.70
RBL Bank has been in a rising trend since January 2025, consistently forming higher highs and higher lows, highlighting a strong bullish structure. The stock is trading well above its 5-, 12-, and 26-week EMAs, reinforcing the trend. On the daily chart, it has shown a bullish mean reversion from the 26-day EMA, indicating renewed buying interest. The MACD remains in buy mode, suggesting sustained momentum and strengthening the case for further upside.
Strategy: Buy
Target: Rs 287
Stop-Loss: Rs 255
Bharat K Gala President, Technical Head at Ventura
Jindal Steel & Power | CMP: Rs 1,000
The primary downtrend in Jindal Steel & Power began at Rs 1,095 (June 2024) and reached a low of Rs 724 in February 2025. The stock later rebounded to a high of Rs 986 in May 2025. It traded in the range of Rs 720–985 from February to July 2025. Recently, the stock formed a positive price candle, trading above key averages and is on the verge of giving a triangle breakout, making a high of Rs 1,002.85. Indicators like Aroon Up/Down, Demand Index, and MACD are positive, suggesting high probability of a further up move.
Strategy: Buy
Target: Rs 1,350
Stop-Loss: Rs 880
Tata Investment Corporation | CMP: Rs 7,138
The primary move in Tata Investment started at Rs 1,751 in April 2023. It touched a high of Rs 9,744.40 in March 2024, followed by profit booking, forming a higher bottom at Rs 1,873 in April 2024. This was followed by a valid correction, which brought the stock down to a low of Rs 5,180 in February 2025. Since then, the stock traded in a range of Rs 5,180 to Rs 8,100 for a prolonged period, frequently taking support at key moving averages.
Recently, the stock has given a range breakout, making a high of Rs 7,625, supported by strong volumes after a phase of consolidation and continuous average support. Hence, the probability of a further upmove is high, with positive indications from the Aroon Up/Down, Demand Index, and MACD.
Strategy: Buy
Target: Rs 11,000
Stop-Loss: Rs 5,650
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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