Repo rates increased by 50basis points. How does it effect stock market and which stocks will be impacted positively? Any views will be much appreciated.
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Abhishek Murarka
@abhymurarka
2 years ago ~40 views
Increase in repo rates are directed towards controlling inflation (see image for flow). While it makes cost of borrowings expensive, it also brings in more retail deposits due to higher returns.
Segments that gain?
1. Banking stocks (not immediately, but good structurally)
2. Low debt companies
3. Companies with high share of raw material cost (manufacturing, industrials) but manageable debt.