{"id":10072,"date":"2025-06-07T12:30:47","date_gmt":"2025-06-07T07:00:47","guid":{"rendered":"https:\/\/trending.niftytrader.in\/?p=10072"},"modified":"2025-06-11T10:35:48","modified_gmt":"2025-06-11T05:05:48","slug":"rbi-easing-cycle-boosts-rate-sensitive-sectors-nexedge-report","status":"publish","type":"post","link":"https:\/\/www.niftytrader.in\/markets\/rbi-easing-cycle-boosts-rate-sensitive-sectors-nexedge-report\/","title":{"rendered":"RBI Easing Cycle Boosts Rate-Sensitive Sectors: Nexedge Report"},"content":{"rendered":"<p data-start=\"82\" data-end=\"611\">Sectors directly influenced by interest rate movements\u2014including banking, non-banking financial companies (NBFCs), real estate, and automobiles\u2014are positioned to benefit significantly as India enters a monetary easing cycle, according to a new report released by Nexedge Research. The report outlines how the declining interest rate environment, coupled with falling inflation and surplus liquidity, is creating a fertile ground for credit expansion, sectoral re-rating, and improved demand conditions across these core segments.<\/p>\n<p data-start=\"613\" data-end=\"630\">Highlights:<\/p>\n<ul data-start=\"631\" data-end=\"886\">\n<li data-start=\"631\" data-end=\"715\">\n<p data-start=\"633\" data-end=\"715\">Banking, NBFCs, real estate, and auto sectors to gain from lower borrowing costs<\/p>\n<\/li>\n<li data-start=\"716\" data-end=\"803\">\n<p data-start=\"718\" data-end=\"803\">Credit flow, vehicle and housing demand expected to improve amid easing rate regime<\/p>\n<\/li>\n<li data-start=\"804\" data-end=\"886\">\n<p data-start=\"806\" data-end=\"886\">Sectors likely to see margin expansion and financing-led volume growth in FY26<\/p>\n<\/li>\n<\/ul>\n<h2 data-start=\"888\" data-end=\"969\">Softening Bond Yields and Money Market Rates Signal Benign Monetary Conditions<\/h2>\n<p data-start=\"971\" data-end=\"1539\">According to Nexedge, India\u2019s financial ecosystem is already reflecting the easing stance. Money market rates and government bond yields are on a declining trajectory, with the 10-year G-sec yield registering consistent softening. This trend has directly translated into improved returns for fixed-income investors and lifted bond prices across durations. The report further observed that this ongoing correction in yields is supportive not only for fixed-income strategies but also for corporate refinancing and credit demand, especially in capital-intensive sectors.<\/p>\n<p data-start=\"1541\" data-end=\"1558\">Highlights:<\/p>\n<ul data-start=\"1559\" data-end=\"1758\">\n<li data-start=\"1559\" data-end=\"1617\">\n<p data-start=\"1561\" data-end=\"1617\">10-year G-sec yields softening, enhancing bond returns<\/p>\n<\/li>\n<li data-start=\"1618\" data-end=\"1688\">\n<p data-start=\"1620\" data-end=\"1688\">Lower rates improving refinancing outlook for corporates and NBFCs<\/p>\n<\/li>\n<li data-start=\"1689\" data-end=\"1758\">\n<p data-start=\"1691\" data-end=\"1758\">Bond market rally supporting asset prices across debt instruments<\/p>\n<\/li>\n<\/ul>\n<h2 data-start=\"1760\" data-end=\"1828\">Inflation Near RBI\u2019s Lower Band, Market Pricing in More Rate Cuts<\/h2>\n<p data-start=\"1830\" data-end=\"2447\">India\u2019s inflation, currently near the lower end of the RBI\u2019s 2\u20136% target range, is reinforcing the central bank&#8217;s flexibility to act further. With the <a href=\"https:\/\/www.niftytrader.in\/stock-screener?utm_source=Menu&amp;utm_medium=Header-Dropdown&amp;utm_campaign=Click-Track\">RBI<\/a> maintaining a neutral stance and inflation risks subdued, the market has begun pricing in the possibility of additional repo rate cuts before the end of 2025. This expectation is supported by data pointing to a broad-based disinflation and sustained moderation in core inflation. According to the report, this rare alignment of macro conditions\u2014low inflation, easing rates, and rising liquidity\u2014is especially constructive for equity and debt market participants.<\/p>\n<p data-start=\"2449\" data-end=\"2466\">Highlights:<\/p>\n<ul data-start=\"2467\" data-end=\"2642\">\n<li data-start=\"2467\" data-end=\"2527\">\n<p data-start=\"2469\" data-end=\"2527\">Inflation tracking near 2%, boosting rate-cut visibility<\/p>\n<\/li>\n<li data-start=\"2528\" data-end=\"2588\">\n<p data-start=\"2530\" data-end=\"2588\">RBI\u2019s neutral stance perceived as dovish tilt by markets<\/p>\n<\/li>\n<li data-start=\"2589\" data-end=\"2642\">\n<p data-start=\"2591\" data-end=\"2642\">Expectations growing for continued easing in 2025<\/p>\n<\/li>\n<\/ul>\n<h2 data-start=\"2644\" data-end=\"2711\">RBI Delivers 50 bps Repo Rate Cut, CRR Eased to Inject Liquidity<\/h2>\n<p data-start=\"2713\" data-end=\"3376\">The Reserve Bank of India, in its June 2025 monetary policy announcement, reduced the repo rate by a larger-than-expected 50 basis points, bringing it down to 5.50%. This marks the third consecutive cut in 2025, cumulatively amounting to 100 basis points since February. Additionally, the central bank slashed the Cash Reserve Ratio (CRR) by 100 basis points to release durable liquidity into the system. This phased CRR reduction\u2014starting September 6 and ending November 29\u2014is projected to inject roughly \u20b92.5 trillion into the banking system, significantly augmenting lending capacity, especially for housing, vehicle finance, and infrastructure-related credit.<\/p>\n<p data-start=\"3378\" data-end=\"3395\">Highlights:<\/p>\n<ul data-start=\"3396\" data-end=\"3594\">\n<li data-start=\"3396\" data-end=\"3462\">\n<p data-start=\"3398\" data-end=\"3462\">Repo rate cut by 50 bps to 5.50%; total cut of 100 bps in 2025<\/p>\n<\/li>\n<li data-start=\"3463\" data-end=\"3532\">\n<p data-start=\"3465\" data-end=\"3532\">CRR cut to inject \u20b92.5 trillion in phased manner by November 2025<\/p>\n<\/li>\n<li data-start=\"3533\" data-end=\"3594\">\n<p data-start=\"3535\" data-end=\"3594\">SD and MSF rates revised to 5.25% and 5.75%, respectively<\/p>\n<\/li>\n<\/ul>\n<h2 data-start=\"3596\" data-end=\"3664\">Easing Cycle Creates Strong Macro Tailwind for Medium-Term Growth<\/h2>\n<p data-start=\"3666\" data-end=\"4230\">The Nexedge report concludes that India\u2019s macroeconomic setup is undergoing a powerful shift\u2014with falling borrowing costs, softening inflation, and abundant liquidity creating a strong medium-term tailwind. Rate-sensitive sectors are likely to benefit from improved credit flow, increased consumer demand, and favorable operating leverage. Combined with a stable global outlook and India\u2019s resilient domestic demand base, these dynamics are expected to provide a sustained boost to corporate earnings, private investment, and equity market participation into 2026.<\/p>\n<p data-start=\"4232\" data-end=\"4249\">Highlights:<\/p>\n<ul data-start=\"4250\" data-end=\"4472\">\n<li data-start=\"4250\" data-end=\"4324\">\n<p data-start=\"4252\" data-end=\"4324\">Macro tailwinds aligning: low inflation, high liquidity, falling rates<\/p>\n<\/li>\n<li data-start=\"4325\" data-end=\"4397\">\n<p data-start=\"4327\" data-end=\"4397\">Earnings upgrades likely in NBFCs, housing finance, and auto sectors<\/p>\n<\/li>\n<li data-start=\"4398\" data-end=\"4472\">\n<p data-start=\"4400\" data-end=\"4472\">Private capex cycle may accelerate amid improving financing conditions<\/p>\n<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Sectors directly influenced by interest rate movements\u2014including banking, non-banking financial companies (NBFCs), real estate, and automobiles\u2014are positioned to benefit significantly as India enters a monetary easing cycle, according to a new report released by Nexedge Research. The report outlines how the declining interest rate environment, coupled with falling inflation and surplus liquidity, is creating a [&hellip;]<\/p>\n","protected":false},"author":4,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1362],"tags":[],"ppma_author":[1331],"class_list":{"0":"post-10072","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-finance-and-economy-news"}," _eael_post_view_count":0,"authors":[{"term_id":1331,"user_id":4,"is_guest":0,"slug":"sourabh","display_name":"Sourabh Sharma","avatar_url":{"url":"https:\/\/trending.niftytrader.in\/wp-content\/uploads\/2025\/11\/Sourabh-Sharma.png","url2x":"https:\/\/trending.niftytrader.in\/wp-content\/uploads\/2025\/11\/Sourabh-Sharma.png"},"0":null,"1":"","2":"","3":"","4":"","5":"","6":"","7":""}],"_links":{"self":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/10072","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/comments?post=10072"}],"version-history":[{"count":3,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/10072\/revisions"}],"predecessor-version":[{"id":10163,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/10072\/revisions\/10163"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/media\/10073"}],"wp:attachment":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/media?parent=10072"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/categories?post=10072"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/tags?post=10072"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/ppma_author?post=10072"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}