HDFC, SBI, Federal Bank among top 10 rate-sensitive stocks post CRR cut: Experts

The Reserve Bank of India (RBI) announced a 50 basis points cut in the Cash Reserve Ratio (CRR) on December 6, infusing Rs 1.16 lakh crore into the banking system. The Monetary Policy Committee (MPC) maintained the repo rate at 6.5 percent for the 11th consecutive meeting since February 2023, while continuing a neutral monetary policy stance. This decision, supported by a 4:2 majority vote, aims to achieve a medium-term Consumer Price Index (CPI) inflation target of 4 percent, with a permissible fluctuation of +/- 2 percent, while also supporting economic growth.

In October, CPI inflation reached its highest in 14 months at 6.21 percent, up from 5.49 percent in September, driven primarily by rising food prices. Simultaneously, the growth rate for the July-September 2024 quarter fell to 5.4 percent, the lowest since Q3FY23, compared to 8.1 percent in Q2FY24 and 6.7 percent in Q1FY25.

Market Reactions and Expert Insights

Divam Sharma, Founder and Fund Manager at Green Portfolio, believes the CRR reduction will positively impact banks by ensuring liquidity. He anticipates no more than a 50 basis points cut in the repo rate for 2025, viewing the current financial system as stable with proactive and responsive RBI decisions.

Sonam Srivastava, Founder and Fund Manager at Wright Research PMS, views the RBI's measured approach as a signal of market confidence, emphasizing the need for collaborative fiscal and monetary efforts to address economic challenges.

Anirudh Garg, Partner and Fund Manager at Invasset PMS, notes the upward revision of the inflation forecast to 4.8 percent for FY25, indicating cautious optimism and supply-side challenges. He welcomes the CRR reduction, especially for sectors like infrastructure and housing.

Top 10 Rate-Sensitive Stocks

Bajaj Finance (CMP: Rs 6,850.4)

Strategy: Buy

Target: Rs 7,295

Stop-Loss: Rs 6,590

Analysis: Broke out of a downward trendline with increased volume. ADX at 35 supports momentum. Short-term outlook remains positive.

Bank of Maharashtra (CMP: Rs 58.33)

Strategy: Buy

Target: Rs 67.80

Stop-Loss: Rs 55.50

Analysis: Retraced 38.2% of its June 2024 decline, with potential to reach 61.8% retracement level.

ICICI Bank (CMP: Rs 1,336.5)

Strategy: Buy

Target: Rs 1,410, Rs 1,440

Stop-Loss: Rs 1,280

Analysis: Horizontal trendline breakout with robust volume. RSI is bullish.

Macrotech Developers (CMP: Rs 1,369.7)

Strategy: Buy

Target: Rs 1,450, Rs 1,480

Stop-Loss: Rs 1,310

Analysis: Rising from October low with higher volume. Bullish indicators like RSI and MACD.

HDFC Bank (CMP: Rs 1,865.75)

Strategy: Buy

Target: Rs 1,950, Rs 2,200

Stop-Loss: Rs 1,800

Analysis: Formed Cup-and-Handle pattern. Ideal entry on dips to Rs 1,810-1,825 range.

State Bank of India (CMP: Rs 865.45)

Strategy: Buy

Target: Rs 950

Stop-Loss: Rs 812

Analysis: Strong uptrend with bullish crossover in momentum indicators.

Federal Bank (CMP: Rs 214.97)

Strategy: Buy

Target: Rs 240

Stop-Loss: Rs 200

Analysis: Robust chart structure with high relative strength. MACD supports bullish momentum.

Axis Bank (CMP: Rs 1,166.4)

Strategy: Buy

Target: Rs 1,250

Stop-Loss: Rs 1,130

Analysis: Rebounded from support zone with a breakout from sloping channel formation.

Oberoi Realty (CMP: Rs 2,130.2)

Strategy: Buy

Target: Rs 2,290

Stop-Loss: Rs 2,060

Analysis: Rising channel formation on weekly charts with bullish ADX and RSI indicators.

Escorts Kubota (CMP: Rs 3438)

Strategy: Buy

Target: Rs 3,700

Stop-Loss: Rs 3,330

Analysis: Oversold territory with potential rebound from demand zone. RSI indicates bullish momentum.

Disclaimer: Users are advised to consult certified experts before making any investment decisions.