Market Experts Reveal 10 Stocks Likely to Gain From RBI’s Rate Cut and Higher GDP Estimate

RBI Cuts Repo Rate and Lifts Growth Forecast, Boosting Sentiment in Rate-Sensitive Stocks

In a widely anticipated yet consequential policy decision, the Reserve Bank of India’s Monetary Policy Committee (RBI MPC) on Thursday voted unanimously to reduce the repo rate by 25 basis points to 5.25 percent, marking a notable shift toward supporting economic momentum. Alongside the rate cut, the RBI sharply revised the FY26 GDP growth forecast upward by 50 basis points to 7.30 percent, citing easing inflation and strong economic activity in recent quarters.

The policy stance remains neutral, although MPC member Professor Ram Singh expressed a preference for shifting toward an accommodative tone. With inflation cooling dramatically and growth numbers surprising on the upside, analysts believe the central bank now has more room to stimulate the economy.

Record Low Inflation and Strong GDP Growth Set the Stage for Policy Easing

The central bank highlighted two key macroeconomic tailwinds:

• Retail inflation (CPI) dropped to a record low of 0.25 percent in October

• India’s Q2FY26 GDP surged to 8.2 percent, reflecting broad-based strength

The MPC noted that headline inflation has moderated sharply, driven by “exceptionally benign food prices.” Updated projections peg FY26 inflation at 2 percent and Q1FY27 inflation at 3.9 percent, well within the tolerance band.

Market experts described the rate cut as both “timely and growth-supportive,” signalling confidence in India’s economic resilience amid global uncertainties.

Umeshkumar Mehta, CIO at Samco Mutual Fund, said the RBI has “gone all out to support India’s growth engine,” adding that with the US also expected to ease policy, the pressure on the rupee may cool, laying the foundation for the next phase of expansion.

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Analysts Expect More Accommodation Ahead if Inflation Stays Soft

Sujan Hajra, Chief Economist at Anand Rathi Group, noted that an additional 25-bps rate cut cannot be ruled out if inflation continues trending below expectations. He expects the policy actions to remain constructive for both equity and bond markets.

Market strategist Sonam Srivastava emphasised that the rate cut will likely strengthen banks, autos, and real estate—the sectors most sensitive to interest-rate movements. However, she cautioned that stock selection remains crucial due to widening earnings dispersion.

The broader market reacted positively: by 1:30 pm on December 5, the Nifty 50 jumped 158 points (0.61%) to 26,192, while the Bank Nifty soared 441 points (0.74%) to 59,729. Other rate-sensitive indices gained between 0.5 and 1 percent.

Experts Select 10 Rate-Sensitive Stocks Likely to Outperform After the RBI Rate Cut

Following the policy announcement, analysts across brokerages identified 10 rate-sensitive stocks positioned to benefit from lower borrowing costs and improved liquidity.

Bajaj Auto: Breakout Signal Gathers Strength

Bajaj Auto has been consolidating within a triangle pattern since September 2025. A breakout above ₹9,110 followed by ₹9,250 could trigger a rally toward ₹9,400–₹9,650, while support rests at ₹8,780.
Strategy: Buy

IndusInd Bank: Near-Term Bullish Bias

Trading above its 30-EMA, IndusInd Bank is poised for a potential breakout. A move above ₹873 may push the stock to ₹907–₹940, with support at ₹840.
Strategy: Buy

PB Fintech: Rounding-Bottom Breakout Emerging

PB Fintech has reversed from strong support at ₹1,630. A daily close above ₹1,880 confirms a breakout toward ₹1,955–₹2,030.
Strategy: Buy

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Axis Bank: Weekly Trend Remains Strong

Axis Bank maintains strength above a major falling trendline. RSI at 68 reinforces bullish momentum toward ₹1,367, with support at ₹1,233.
Strategy: Buy

TVS Motor Company: Robust Uptrend Across Timeframes

Trading consistently above key EMAs, TVS Motor is supported by strong RSI readings. Upside targets include ₹4,010.
Strategy: Buy

Bajaj Finance: Momentum Rebounding

Bajaj Finance reclaimed its 21-EMA and shows strengthening momentum. The stock may rise toward ₹1,150, with support at ₹1,018.
Strategy: Buy

State Bank of India: Weakness Persists

SBI has fallen below crucial moving averages and may drift toward ₹921, with resistance at ₹970.
Strategy: Sell

ICICI Bank: Consolidation With Bullish Tilt

ICICI Bank remains above its 10-, 20-, and 50-DMAs. Upside potential lies at ₹1,404–₹1,450, with stop-loss at ₹1,335.
Strategy: Buy

Mahindra & Mahindra: Strength in Consolidation

M&M trades firmly above key moving averages. Targets range from ₹3,750 to ₹3,880, with support at ₹3,620.
Strategy: Buy

Punjab National Bank: Breakout Above ₹120 Could Accelerate Gains

PNB remains in a broader uptrend. Above ₹120, the stock may move toward ₹124–₹140.
Strategy: Buy

Phoenix Mills: Strong Relative Strength in Real Estate Space

Phoenix Mills maintains a higher-top higher-bottom structure with RSI above 60, indicating sustained momentum toward ₹1,880.
Strategy: Buy

Rate Cut Sets the Tone for a Stronger Market Outlook

With inflation cooling and growth accelerating, the RBI’s latest rate cut signals confidence in India’s macroeconomic trajectory. As liquidity conditions ease, rate-sensitive stocks across banking, auto, and real estate are expected to lead the next leg of the market rally. Analysts believe that if inflation continues its soft glide path, the central bank may still have room to maneuver, keeping sentiment upbeat for investors.

• Nifty 50
• Bank Nifty
• Sensex