The countdown is on. The RBI’s Monetary Policy Committee (MPC) is set to announce its decision tomorrow — and the markets are watching with bated breath.
So, what’s the big story?
Most experts believe the RBI will keep rates unchanged, playing it safe amid global uncertainty. But here’s the twist: if the central bank surprises with a 25 basis point rate cut, the market could react like a coiled spring — with a swift and sharp rally.
🟠 Baseline View: No rate cut this time.
🟢 Surprise Scenario: A 25 bps cut = Bullish trigger.
With inflation fairly under control and growth risks building due to global tariffs, the RBI does have room to act. But it's not just about cutting rates — it's about sending a signal. A cut now could show that the RBI is ready to stay ahead of the curve and protect growth.
If the RBI cuts the repo rate, expect a quick and positive reaction in:
🏦 Banking stocks (lower cost of funds = better margins)
🚘 Auto stocks (easing loan rates = stronger demand)
🏗️ Real estate (affordable EMIs = more buyers)
📉 Rate-sensitive midcaps
It could also boost market sentiment ahead of the earnings season and bring in fresh FII flows.
We believe the RBI may stay cautious for now — but if they choose to act, the market won’t take it lightly.
💡 Even a 25 bps rate cut could flip market mood from cautious to bullish in a single session.
As a trader or investor, stay nimble, focus on quality names, and be ready to act fast if policy surprises.
📺 Watch our latest video:
RBI Policy Preview + 4 Stocks for Tomorrow’s Trade
👉 https://www.youtube.com/watch?v=d3I9ARe5_VU
🧠 Stay smart. Stay ahead.
– Team AG Analyst
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