RBI cuts repo rate by 25 bps; these 10 rate-sensitive stocks are likely to benefit the most
1) Axis Bank and SBI:
Corporate Banks are the theme of the current bull run as NPAs are showing a decline on a quarterly basis and the outlook for growth is visible as a rate cut cycle has begun. This is where Axis Bank and SBI could lead the rally.
2) Ujjivan Financial Services:
Ujjivan is among the few NBFCs that posted better than expected results whereas there are major changes of key personnel at Ujjivan which is a positive sign for the company.
3) Ashok Leyland:
After a painful period, the auto sector may see some revival as liquidity crisis may be resolved soon and capex cycle is likely to improve after a stable government comes into the power.
4) Federal Bank:
The bank’s business grew strongly and management has focused on retail banking, which would continue to give strong, balanced credit growth and improvement in asset quality.
The bank is empanelled in 15 states and is catering to 200 government entities. New partnerships in the general insurance sector with Tata AIG and HDFC Ergo will augment fee income.
5) LIC Housing Finance:
The Company has registered improvements on both margins and asset quality. The management of the company is confident of further improvements in all operational areas in the coming years.
Given the positive push by the government, housing finance is perceived as the most lucrative sector in the current times, which is elevating the competition within the sector.
The company aims to build healthy foods, premium hair nourishment and male grooming into growth engines of the future and expects to deliver value growth at 20% plus CAGR over the medium term in these portfolios.
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