RBI policy: Stock market experts suggest ‘buy on dips’ strategy in these interest rate sensitive sectors

RBI monetary policy meeting: In three days monetary policy committee meeting (MPC) from 8th to 10th August 2023, the Reserve Bank of India decided to keep repo rate steady at 6.50 per cent for third time in a row. After the announcement of RBI MPC meeting outcome, stock market experts have predicted volatility in interest rate sensitive segments like banking, NBFC, auto, real estate and infrastructure. However, they said that any dip in quality stocks of these segment should be seen as buying opportunity by positional investors.

Segments to look at

On segments that may trade volatile ahead of RBI policy meeting outcome, On intraday trading strategy in the wake of RBI MPC meeting, Santosh Meena, Head of Research at Swastika Investmart said, "Rate-sensitive sectors such as banking, NBFCs, real estate, auto, and infrastructure are likely to remain in focus."

Stocks to buy today

On stocks that should be in focus of intraday traders and positional investors, Swastika Investmart expert said that stocks like DLF, Godrej Properties, and M&M Finance may remain volatile on policy day.

On segment wise stocks to look at Avinash Gorakshkar, Head of Research at Profitmart Securities said, "In auto segment, one can look at Mahindra & Mahindra (M&M) and Tata Motors shares, in banking sector one can look at Bank of Baroda, Punjab National Bank and ICICI Bank shares."

In third RBI monetary policy meeting of the financial year 2023-24, the RBI MPC unanimously decided to keep the repo rate steady at 6.50 per cent, which most of the economic experts were expecting. However, the RBI governor announced that retail inflation during FY24 would be around 5.4 per cent against 5.1 per cent in FY23. The RBI governor predicted GDP growth of 6.50 per cent in FY24 as well.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.