Top stocks to benefit from RBIs rate cut

On February 7, 2025, the Reserve Bank of India (RBI) cut the repo rate by 25 basis points to 6.25%. Governor Sanjay Malhotra led this decision, marking the first rate cut in nearly five years. The goal is to boost economic growth and support consumption amid global economic uncertainties.

Several stocks will benefit from this rate cut. Among the top picks are Bajaj Finance, Maruti Suzuki, and ICICI Bank. Financial experts predict these companies will see significant gains due to increased borrowing and spending. Bajaj Finance benefits from lower interest rates, boosting consumer lending. Maruti Suzuki, a leading carmaker, may see higher sales as car loans become more affordable. ICICI Bank, one of India’s largest private banks, gains from increased lending activity.

Lower EMIs for home loan borrowers, increased liquidity, and overall economic stimulation are expected outcomes of the rate cut. The decision is seen as a positive move for the economy, with potential gains for investors in rate-sensitive sectors like finance, automotive, and banking.

Overall, the RBI’s proactive approach tackles economic challenges and supports growth, benefiting borrowers, investors, and the broader economy.