• Investing
  • Stock
  • Economy
  • Editor’s Pick
Portfolio Performance Today
Stock

RBI’s rate cut bonanza: why India’s IPO pipeline could be set for a blockbuster run

by June 9, 2025
by June 9, 2025

The Indian stock market is poised for a positive start, with Nifty futures pointing upwards, still riding the wave of excitement from the Reserve Bank of India’s (RBI) blockbuster monetary policy announcement last Friday.

A generally upbeat mood across Asian equities, driven by renewed optimism about US-China trade talks, is also expected to lend further support to market sentiment. In the local bond market, all eyes will be on short-term yields, where the recent rally is anticipated to continue.

The Reserve Bank of India’s unexpected 50-basis point cut in the repo rate, coupled with a significant cash boost to the banking system, could be just the catalyst needed to spur companies to fast-track their plans for public listings.

Lower interest rates typically reduce the hurdle for equity issuance, making IPOs a more attractive proposition for both companies and investors.

An immediate litmus test for this revived IPO sentiment will be the upcoming public offering from HDB Financial Services, which recently received regulatory approval.

Wall Street doubles down on India, derivatives in focus

The optimism isn’t confined to domestic players.

Wall Street banks are increasingly bullish on Indian equities, positioning the country as a standout performer even amidst the uncertainties clouding global trade.

This positive view is now spilling over into the market for short-term leveraged products.

JPMorgan, for instance, is recommending short positions on one-month Nifty volatility, while Bank of America suggests using now-cheaper hedges to protect existing long positions.

The RBI’s surprise liquidity injection on Friday is likely to further amplify this positive sentiment, adding more fuel to India’s already strong market momentum.

Monsoon woes: early rains cool demand for air-conditioner makers

While financial markets are buzzing, some sectors are facing weather-related headwinds.

It’s not just cement producers feeling the impact; room air-conditioner manufacturers have also been caught off guard by the early arrival of the monsoon season.

According to analysts at Centrum and IIFL, demand for room air conditioners began to taper off as early as April, as the summer failed to live up to the harsh heat predicted by the weather office.

Centrum estimates that industry volumes for the current quarter could be significantly lower, potentially down by 25%-30% year-on-year.

Air-conditioner producers are now pinning their hopes on new energy efficiency norms, set to come into effect in January, to spur some advance buying from consumers looking to upgrade before the changes.

In the meantime, shares of leading players in the sector, such as Voltas, Blue Star, and Epack Durable, have seen declines ranging from 26% to 34% so far this year.

Bond market reacts: short-term yields rally on liquidity boost

The short-term bond market experienced a significant rally on Friday following the RBI’s surprise decision to slash the cash reserve ratio (CRR) by the most in five years.

The central bank estimates this move will inject a substantial 2.5 trillion rupees of liquidity into the system.

Analyst actions

Several stocks have seen rating changes from prominent brokerages:

  • HDFC Bank: Raised to Buy at ICICI Securities; Price Target (PT) 2,300 rupees.
  • Kotak Mahindra Bank: Rated New Add at InCred; PT 2,410 rupees.
  • PNC Infratech: Raised to Buy at ICICIdirect.com; PT 360 rupees.

The post RBI’s rate cut bonanza: why India’s IPO pipeline could be set for a blockbuster run appeared first on Invezz

0 comment
0
FacebookTwitterPinterestEmail

previous post
What next for the Joby Aviation stock price after recent surge?
next post
Asian markets open: positive start with Nikkei +0.91%, Kospi +1.71%; Sensex tracks global gains

Related Posts

Asian markets open: Nikkei hits another record high,...

October 7, 2025

Top reasons why the Topix and Nikkei 225...

October 7, 2025

Goldman Sachs boosts 2026 gold price forecast to...

October 7, 2025

Beijing intensifies oil stockpiling amid global supply and...

October 7, 2025

Trump’s new 25% truck tariff targets imports from...

October 7, 2025

CAC 40 Index outlook: Understanding the decline and...

October 7, 2025

DAX Index analysis: Why German stocks are rising...

October 7, 2025

Europe markets open: Stoxx 600 flat, CAC 40...

October 7, 2025

LG India’s $1.3B share sale highlights record IPO...

October 7, 2025

Trilogy Metals shares soar over 200% as White...

October 7, 2025

Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.

By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

Recent Posts

  • The OECD’s Warning to America: Economic Growth Is Slipping

    October 7, 2025
  • Semiconductor Giants with Tech-Industrial Ambitions

    October 7, 2025
  • Will Bitcoin Strengthen or Weaken US Dollar Dominance?

    October 7, 2025
  • Asian markets open: Nikkei hits another record high, Sensex up 140 pts

    October 7, 2025
  • Top reasons why the Topix and Nikkei 225 indices are soaring

    October 7, 2025
  • Goldman Sachs boosts 2026 gold price forecast to $4,900 amid strong demand

    October 7, 2025

Editors’ Picks

  • 1

    Meta executives eligible for 200% salary bonus under new pay structure

    February 21, 2025
  • 2

    Walmart earnings preview: What to expect before Thursday’s opening bell

    February 20, 2025
  • 3

    New FBI leader Kash Patel tapped to run ATF as acting director

    February 23, 2025
  • 4

    Cramer reveals a sub-sector of technology that can withstand Trump tariffs

    March 1, 2025
  • 5

    Anthropic’s newly released Claude 3.7 Sonnet can ‘think’ as long as the user wants before giving an answer

    February 25, 2025
  • 6

    Nvidia’s investment in SoundHound wasn’t all that significant after all

    March 1, 2025
  • 7

    Pop Mart reports 188% profit surge, plans aggressive global expansion

    March 26, 2025

Categories

  • Economy (2,804)
  • Editor's Pick (280)
  • Investing (185)
  • Stock (1,914)
  • About us
  • Contact us
  • Privacy Policy
  • Terms & Conditions

Copyright © 2025 Portfolioperformancetoday.com All Rights Reserved.

Portfolio Performance Today
  • Investing
  • Stock
  • Economy
  • Editor’s Pick
Portfolio Performance Today
  • Investing
  • Stock
  • Economy
  • Editor’s Pick
Copyright © 2025 Portfolioperformancetoday.com All Rights Reserved.

Read alsox

European stocks open higher: DAX up 0.47%,...

September 29, 2025

Europe markets open: stocks poised higher; central...

May 8, 2025

Here’s why the Accenture stock price has...

March 21, 2025