In line with our expectations the RBI has reduced the repo rate by 25bp to 6.5% in its first bi-monthly policy review of this fiscal and addressed the liquidity shortage witnessed by the bank. We believe that RBI has further room for rate cuts in the quarters to come. Lower interest rates will come as a relief for both consumers and corporates. Interest rate sensitive sectors like auto, banks, housing finance companies and select players in the infrastructures and real-estate space could see improvement in volumes. Our top-picks in these sectors are LIC Housing Finance, Dewan Housing Finance, Mahindra Lifespace, and IL&FS Transportation Networks. Further we remain positive on consumption based stocks like Blue Star, Radico Khaitan, Siyaram Silk Mills, etc.