📉 RBI Surprises With 50 BPS Rate Cut to 5.50% – Positive for Markets & Home Loan Borrowers

Formal Summary for Stock Market Outlook:
In a surprising move, the Reserve Bank of India (RBI) slashed the repo rate by 50 basis points, bringing it down to 5.50% following its three-day MPC meeting. RBI Governor Sanjay Malhotra announced the higher-than-expected cut, signaling a pro-growth stance.

Market experts see this as positive for equities, especially for interest rate-sensitive sectors such as real estate, banking, and auto. The cut is likely to reduce borrowing costs, potentially boosting credit demand and corporate earnings.

For consumers, home loan EMIs may fall by approximately ₹2,000 on a ₹50 lakh loan over 20 years, provided banks pass on the rate cut. However, bank fixed deposit rates may decline, affecting conservative investors.

Stock Market Impact:

📈 Bullish sentiment for rate-sensitive stocks

🏦 Boost for housing finance and banking sector

🚗 Auto and capital goods stocks may benefit from improved liquidity


Visit us at: www.eqwires.com
Connect us @EqwiresSebiRegistered