The Reserve bank of India's announcement of a 0.50 basis point cut in the repo rate has become a major topic of discussion across the country. That is, the rate at which the Reserve bank can lend to other banks is called the repo rate. The Reserve bank has reduced that. Since their interest rates have come down, banks will also reduce the interest on auto loans and home loans that they can give to the public. Therefore, this is seen as a good announcement among borrowers. This year alone, the repo rate, which was 6.5%, has been reduced to 5.5%. The Reserve bank has made such an announcement to keep the indian economy on the growth path, considering various factors such as the problems caused by US President Donald Trump's tax measures and the international economic environment. vivek Khatri, a SEBI-registered stock market analyst, has written in detail on the X-Site page about the impact of this announcement by the bank OF INDIA' target='_blank' title='reserve bank of india-Latest Updates, Photos, Videos are a click away, CLICK NOW'>reserve bank of india on the sectors.
He said that this is a good announcement for banks and financial institutions. The interest rate cut will increase the tendency to borrow from banks, which will be profitable for banks in the long run. Especially those belonging to small and medium enterprises will take more loans. This will help create employment opportunities and improve production in the country. Therefore, the bank OF INDIA' target='_blank' title='reserve bank of india-Latest Updates, Photos, Videos are a click away, CLICK NOW'>reserve bank of india will have an impact on the shares of banks and financial institutions including Bajaj Finance, Shriram Finance, HDFC, and ICICI through this interest rate cut.
Real Estate Sector: Since interest rates are low, most people will come forward to buy houses by taking loans from banks. This will increase the sales of houses in India. This is seen as a great announcement for the real estate sector. A report says that more than 4.5 lakh houses have already been built in india but have not been sold. In such an environment, the Reserve Bank's interest rate cut will help in house sales. You can consider stocks like DLF, Sobha, and Godrej Properties.

 Vehicle sales: The interest rate cut will also encourage the reduction of interest on vehicles. Therefore, vehicle sales in india will increase. This means that many people will come forward to buy vehicles by taking loans from banks. This will promote the shares of companies related to the automobile sector. In this sector, we can consider the shares of companies including mahindra mahindra, hero Motor, and Maruti.

 FMCG: The Reserve bank has released a forecast that retail price inflation will decrease in India. If so, the prices of goods will decrease. This is seen as good news for the people. The monthly EMI amount that people pay for loans has also decreased due to the interest rate cut. Therefore, there will be more cash in the hands of people. Therefore, the consumption trend will increase. Stocks of HUL, ITC, Voltas, and Crampton can be considered in this category.
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Sowmiya Sriram

07/06/2025 10:11 AM