RBI Policy meet: These sectors and stocks will be in focus as RBI brings smiles all around

The stability in interest rate also means consumers can plan their purchases in a better way.

The market shrugged off its initial weakness and bounced higher on April 6 following a surprise move by the Reserve Bank of India keeping its policy rates unchanged. Though, some cooling off was seen at higher levels.

The Nifty climbed 50 points or 0.29 percent to 17607 level while the Sensex was stabilising around 59,821, up 0.22 percent. Buying was seen in PSU banks, realty and financial services names.

Adani Enterprises, Bajaj Finance, IndusInd Bank and SBI were top gainers in the Nifty block, while losers included ONGC, HCL Tech and Tech Mahindra.

The RBI said it is pausing its rate hiking cycle with policy rate at 6.50 percent. The direct implication is that your EMIs will not rise which is a relief for lakhs of homeowners and vehicle owners.

The stability in interest rate also means consumers can plan their purchases in a better way.

“This is a best-case scenario and positive for the markets,” said Divam Sharma, Founder, Green Portfolio PMS. “The companies in the following category – large debt companies, growth stocks, small and mid-cap space companies, and specific sectors like consumer durables and real estate will witness some respite in the medium term.”

F&O Manual: Bank Nifty rise as RBI holds rate, traders still cautious

Sharma added that the banking sector will likely witness some short-term relief rally as the global banking crisis fears are waning. Nifty Bank was up 0.26 percent to 41,105 level.

Homeowners cheer

Nifty Realty index rose over a percent as fears of further rise in EMIs waned. Home buyers have been in a limbo for the past several months as the cost of borrowing for the homes have gone up sharply.

Home loan interest rates provided by banks are linked to RBI policy rates. The central bank has raised rates by 250 basis points in the last one year.

“From a real estate market perspective, the sector has weathered multiple home loan interest rate increases from a low of 6.5 percent to 8.75 percent, supported by favourable house purchase affordability and the strong desire towards home ownership,” said Shishir Baijal, Chairman & Managing Director, Knight Frank India. “Therefore, a pause in any further rise in the lending rates should support the existing growth momentum in the housing sector.”

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