Experts suggest buying these 5 shares after RBI monetary policy meeting: IRFC, Bajaj Finance, and HDFC Bank

The Reserve Bank of India (RBI) recently announced its decision to keep the repo rate unchanged at 6.50 percent for the seventh consecutive Monetary Policy Committee (MPC) meeting. While this may seem like a status quo, stock market experts are viewing this move as an opportunity for long-term investors, particularly in the banking and financial sectors.

Experts believe that the RBI’s decision to maintain the repo rate means that there will be no cheaper money available to lenders, which could potentially lead to a correction in banking and financial stocks. However, they also pointed out that the global economic landscape, particularly the three rate cuts announced by the US Federal Reserve in 2024, could influence the RBI’s future decisions on interest rates.

In light of this, experts are advising medium to long-term investors to consider adding or accumulating shares of State Bank of India (SBI), HDFC Bank, IRFC, Poonawalla Fincorp, and Bajaj Finance. These banking and financial stocks are expected to benefit from potential rate cuts and improved credit growth.

Anil Rego, Founder and Fund Manager at Right Horizons, emphasized that the banking sector is sensitive to rate cycles and has been a major contributor to earnings growth. He also highlighted that NBFCs and credit-sensitive sectors like auto and real estate are likely to see increased demand with rate cuts.

Overall, the RBI’s monetary policy decision is expected to impact investor sentiment and market dynamics. While concerns over inflation and global economic risks may temper market gains, banking stocks could benefit from the central bank’s focus on liquidity management. Investors are advised to seek guidance from certified experts before making any investment decisions.