RBI MPC meeting: The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) has kept the repo rate unchanged at 6.50 per cent. This is the ninth time the RBI MPC kept the repo rate unchanged. The Central Bank of India also kept the actual Gross Domestic Product (GDP) unchanged at 7.20 per cent in the FY25. This means the Indian apex bank is bullish on the domestic growth story despite challenges from global developments.
According to stock market experts, after the recent volatility in the Indian stock market, Indian stocks are definitely at higher valuations, and it's high time to rejig one's portfolio. They said that pharma, FMCG, and consumer durable stocks are expected to gain momentum as stocks in these segments are available at discounted levels. However, they remained bullish on railway and banking stocks despite high returns in recent years.
Unveiling the stock market strategy after RBI's strong outlook for the current fiscal year, Saurabh Jain, Vice President— Research at SMC Global Securities, said, "The RBI has kept the actual GDP growth rate for the financial year 2024-25 unchanged at 7.20 per cent despite various challenges from the global economy. This augurs well for the national economy. So, liquidity flow is expected to continue in the markets."
The SMC Global Securities expert advised investors to rejig their portfolios as most Indian stocks, especially small-caps and mid-caps, are trading at higher valuations. He suggested looking at large-cap stocks and maintaining a 'buy-on-dips' strategy after taking a position in one's value pick.
Expecting the volatility in the Indian stock market, Avinash Gorakshkar, Head of Research at Profitmart Securities, said, "The RBI has been able to keep inflation under check, and hence liquidity in the market is expected to remain available in FY25. So, capital-intensive segments like railway, power, and energy infrastructure companies are expected to sustain their growth story despite giving stellar returns to their shareholders." However, he also said there can be some pause in the PSU and auto segment.
On segments that may generate alpha returns that beat the key benchmark indices, Saurabh Jain of SMC Global Securities advised investors to look at value picks in pharma, FMCG, and consumer durables, as these segments contain stocks available at discounted prices.
Disclaimer: The views and recommendations above are those of individual analysts, experts, and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.
