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Invest in Rate Sensitive Equity - Rate Cut on the Way

Today, RBI will reveal it's monetary policy for coming month. The recent cool down of inflation and controlled trade deficit may encourage RBI to come out with rate cut.

In my point of view, RBI may come out with positive surprises also to kick start stalled industrial sector.

Investor may consider to invest in rate sensitive sectors such as Real Estate, Metal, Power, Telecom. Companies from these sectors are reeling under heavy debt and pay huge interest to service their debt on quarterly basis. The rate cut will be breather for them and will offer them to invest the saved interest into expansion. It will be positive in pushing those companies towards profitability and job creation. One may invest in Hindalco Industries, Tata steel,  Sail, Bharti Airtel, Idea Cellular with medium to long term view.

Please stay away from F&O market.

Disclaimer: Consult your financial advisor before investing
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About Devendra Prasad

20 years plus industry veteran of domestic and international ICT domain with the expertise in Business, Technology, Strategy and Analysis. Specializes in forecasting impact analysis, trends and recommendations for Investments, Technology and Regulations.
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