Banks & NBFCs are expected to be one of the key beneficiaries of lower interest rates, but experts suggest to remain invested with sector leaders.
Generally, the auto sector and related segments benefit from interest rate cut due to lower EMIs.
Companies that are likely to benefit the most are the ones which are high debt companies, housing finance companies, as well as realty stocks, suggest experts.
A rate cut generally augers well for the companies that are debt-laden, auto sector, banks and NBFCs.
Autos and the banking index are trading on a flat to negative note while the realty index is flat after the RBI announced a rate cut of 35 bps.
Bank Nifty was down over 1 percent with losses from HDFC Bank and ICICI Bank which shed 2 percent each