RBI Policy 2024 announcement: What Investors should do after It

"What to Expect from RBI Monetary Policy 2024: Insights into the Indian Stock Market"

Indian stock market is enjoying Bull Run from last 4 years and Investors are earning good amount of Money from Indian stock market. From Last couple of Years, Indian stock market has become choice of FIIs because of the growth Story of India economy. Indian stock market is most attractive in term of Consumer consumption power because population in India comes second in the world.

Today, RBI is going to announce Monetary Policy April 5-2024 & many traders are ready for it but investors are still thinking that what they should do in Indian stock market after announcement of RBI Policy.

Let us understand the Expectations of Indian stock market from RBI Monetary Policy 2024.

Expectations of unchanged Interest rates:

Many Big sharks of Indian stock market as well as FIIs are not expecting any changes in REPO Rates and all are expecting that Repo rates will remain unchanged at 6.5%. When the RBI reduces interest rates in any term like repo rate, reverse repo rate, CRR, SLR then it leads to a decrease in the cost of borrowing for companies. This reduces their cost of capital and increases their profitability of companies, further it reflects in the company stock prices & Stock prices of the companies increase.  

Macroeconomic Forecasts:

Indian investors are more interested in listening the forecast of Macroeconomic growth. Especially GDP Growth & Inflation. Everyone is expecting that RBI will announce good GDP Forecast for FY25 and Expectations on GDP forecast is nearly 7% to 8% in between.

Also read: Nifty Future Targets after Lok Sabha Elections Results 2024

Liquidity Situation:

 "Liquidity and Growth: Key Factors Influencing the Indian Stock Market after RBI's Monetary Policy Announcement"

For the Stock market, Liquidity is like a flow of blood in the human body. Therefore, comfortable statement in term of Better Liquidity condition will give boost to India stock market Bull Run.

Overall, We can say that Indian stock market analysts & investors are not expecting any Rate cut in the April 2024 Monetary Policy. As per Our View ( Multi bagger stock Ideas, PS Group), We may see some announcements in the Rate cut in the month of October 2024 or After the Lok Sabha election 2024.

If RBI meets the expectations of Indian stock market then we will see “Bullish” to be continue in the Indian stock market. In Any case RBI announce Rate cut in April 2024 Monetary Policy or Give Signal or any statement on “Rate Cut” in the coming Monetary Policy then we may see “Profit” booking in the Indian stock market. Especially, Bank Nifty can retest the Support levels, otherwise Indian stock market is in the Bullish trend and we may see another Rally in the Midcap & Small Cap Stocks.