Effect of rate cut by RBI

Discussion in 'Ask A Query About Your Stock Picks And Portfolio' started by n pal, May 31, 2015.

  1. n pal

    n pal New Member

    May 20, 2015
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    i want to know the effect of rate cut by RBI in indian stock market especially which stocks/sectors will be maximum gainer from it.
  2. stockguru

    stockguru Active Member

    May 29, 2015
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    I am not an economist but I believe if RBI cuts rate and if the same is passed on by the banks then the companies which have a debt will benefit the most as the interest cost on their debt would come down. Also those companies who want to have debt either for working capital or for expansion or for any other purposes would also pay lower interest cost. Moving from companies the benefits of rate cuts would also be on consumers who have taken a home loan as even their interest cost would come down resulting in more money in hands of consumer. I think it is difficult to pin point a single sector as the trickle down effects are felt by almost everyone.