MUMBAI, Jan 15 (Economic Times): Shares of rate sensitives such as banks and NBFCs surged in early trade after the Reserve Bank of India (RBI), in a surprise move, lowered repo rate by 25 bps.
The path of inflation, while below the expected trajectory, has been consistent with the assessment of the balance of risks in the Reserve Bank's bi-monthly monetary policy statements.
The central bank stated that "once the monetary policy stance shifts, subsequent policy actions will be consistent with this stance. Key to further easing are data that confirm continuing disinflationary pressures."
Ashish Kumar, Economist, Elara Capital is of the view that the RBI statement indicates that RBI is internally sure about the inflation trajectory within its comfort band for next 4-6 quarters.
The Bank Nifty rallied over 3 per cent to hit a record high of 19,410.40 in early trade. The sentiment has turned bullish and the rate sensitive stocks are likely to lead the market rally in coming sessions.
According to Esprito Santo, the major beneficiaries of the repo rate cut will be IndusInd Bank and HDFC Bank. Among the PSU banks, it sees OBC to benefit.
Six cos that stand to benefit from RBI rate cut
FE Team | Published: January 16, 2015 00:00:00 | Updated: November 30, 2026 06:01:00
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