RBI repo rate cut: SBI, ICICI Bank to Asian Paints — experts recommend these seven stocks to buy today

Stock market today: Indian indices, Nifty and Sensex, opened lower and remained in negative territory, declining by over half a percent even as the Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) slashed repo rate and changed stance to ‘neutral’ from ‘accommodative’.

RBI, as anticipated, reduced the repo rate by 25 basis points on Wednesday, April 9. The RBI's six-member MPC unanimously voted to lower the repo rate to 6 per cent, with the change taking effect immediately.

Rate-sensitive stocks trade mixed

Rate-sensitive sectors traded mixed, with Bank Nifty and Nifty Private Bank indices declining by approximately 1 per cent. While the Nifty Realty index dropped sharply, falling 2.5 per cent during the session, the Nifty Auto index rose by as much as 1 per cent.

“RBI's rate cut move is expected to impact rate-sensitive segments like banking, auto, consumer durables, real estate, etc., as the rate cut is expected to push Indian banks to reduce their home loan, auto loans, etc. and pass on the benefit to their loan borrowers. So, banks will get extra business due to lower monthly EMI on various loans, leading to strong earnings in the upcoming quarters. So, one can look at the above-mentioned segments for value picks,” said Avinash Gorakshkar, Head of Research at Profitmart Securities.

However, Mahesh M Ojha, AVP — Research at Hensex Securities, recommended avoiding real estate and auto stocks and picking consumer durables. “The RBI has tried to maintain liquidity in the market, but due to fear of recession, one should avoid real estate and auto stocks. However, value picks are available in the consumer durables, banking, and finance segments. Large-cap and mid-cap stocks should be preferred over small-cap stocks,” said Ojha.

Stocks to buy today

On stocks to buy after the RBI policy meeting outcome, Anshul Jain, Head of Research at Lakshmishree Investment and Securities, said, "In large-cap banking stocks, one can look at SBI, HDFC Bank, ICICI Bank, and Axis Bank shares. Bajaj Finance and Bajaj Finserv can be good bets in the financial segment. In the consumer durables segment, Asian Paints shares can be a good value pick."

SBI

SBI share price was trading over 2 per cent lower at ₹753.50 in Wednesday's trading session.

Asian Paints

Asian Paints share price climbed over 1.19 per cent to ₹2,421.802 on April 9.

HDFC Bank

HDFC share price traded in the red, down nearly a per cent at ₹1,756.20 in Thursday's trading session.

ICICI Bank

ICICI Bank share price traded lower by 0.71 per cent to ₹1,290.55 on April 9.

Axis Bank

Axis Bank share price plunged 1.52 per cent to ₹1,061.45 in Thursday's session.

Bajaj Finance

Bajaj Finance share price descended over 2 per cent to ₹8,646.70 on April 9.

Bajaj Finserv

Bajaj Finserv share price also traded in the red, down by 0.6 per cent to ₹1,891.40.

Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.