The Reserve Bank of India (RBI) is currently conducting its Monetary Policy Meeting (MPC) from October 4th to October 6th, 2023. The outcome of the RBI MPC meeting is expected to be announced on Friday, October 6th. Market experts suggest that the stock market anticipates no change in interest rates, and as a result, the financial markets have already begun factoring in the potential outcome of the RBI policy meeting.
Experts point out that interest rate-sensitive sectors like banking, automobiles, real estate, and consumer durables have started experiencing significant movements in anticipation of the RBI policy meeting outcome. With the beginning of the Q2 results for the fiscal year 2023-24 set to commence next week, investors are advised to consider stocks that will benefit from both the RBI MPC meeting outcome and the upcoming quarterly results season.
Saurabh Jain, Vice President of Research at SMC Global Securities, recommends focusing on companies dealing in premium products. He highlights the expected surge in premium product sales in the recently concluded quarter and offers stock recommendations for different sectors:
- Automobile Segment: Mahindra & Mahindra (M&M) and Maruti Suzuki India.
- Real Estate Segment: DLF and Prestige.
- Banking Segment: Axis Bank.
Avinash Gorakshkar, Head of Research at Profitmart Securities, emphasizes the likely impact of the RBI policy meeting outcome on rate-sensitive segments such as banking, real estate, automobiles, and consumer durables. He suggests that these segments are expected to witness increased sales volumes and recommends investors to hold stocks from these sectors, anticipating better returns in the near term.