How RBI’s 50 bps Rate Cut Boosts Markets: Top 5 Sectors & 10 Stocks to Watch
On June 6, 2025, the Reserve Bank of India (RBI) made waves by cutting the repo rate by 50 basis points, bringing it down to 5.50%. This is the third rate cut in 2025, totaling a 100 bps reduction so far this year. The move signals a strong push to fuel economic growth, increase credit availability, and encourage investments. But what does this mean for investors? Let’s break it down and explore the top five sectors poised to thrive, along with ten standout stocks backed by solid fundamentals and promising technical trends. Why a Rate Cut Sparks Opportunity When the RBI lowers the repo rate, it reduces borrowing costs for banks, which often trickle down to consumers and businesses. This creates a domino effect, sparking demand and growth in key areas of the economy. Here’s how it shakes out: Lower EMIs : Affordable loans drive demand for homes, cars, and big-ticket purchases. Cheaper business loans : Companies can fund expansion and projects at lower costs. Market optimism : Inc...