RBI Monetary Policy: Experts Identify Top 8 Stocks for Investment Amid Unchanged Key Interest Rate

RBI Maintains Neutral Stance, Keeps Policy Repo Rate Unchanged at 5.25 Percent

The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI), led by Governor Sanjay Malhotra, on June 5 unanimously decided to keep the policy repo rate unchanged at 5.25 percent, while continuing with its neutral stance. The central bank prioritized balancing growth and inflation, even as it raised its FY27 inflation estimate to 5.1 percent from 4.6 percent earlier and lowered its full-year real GDP growth projection to 6.6 percent from 6.9 percent, with downward revisions across all quarters.

The RBI is awaiting greater clarity on the West Asia conflict and its impact on oil and gas supply chains, along with the broader global environment, which has deteriorated since the last policy meeting. The US-Iran conflict continues to linger despite a fragile truce. The decision was largely on expected lines, given the considerable risks to the MPC's baseline assessment of inflation and growth arising from uncertainty over the duration and intensity of the conflict, the magnitude of its spillover effects, and the pace of supply chain normalisation.

The central bank expressed concerns over food inflation, as the food outlook remains uncertain due to the forecast of a sub-normal southwest monsoon and the possibility of El Niño conditions. The RBI stated that it would remain data-dependent and closely monitor developments, including the risk of supply-side pressures becoming embedded in the general price level and inflation expectations.

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RBI Introduces Measures to Attract Foreign Capital

To attract foreign capital, the RBI introduced decisive measures, including scrapping capital gains tax for eligible foreign investors in government bonds, easing foreign portfolio investor (FPI) access limits, and incentivising NRI dollar deposits while subsidising hedging costs. These steps, combined with concessional forex swaps, are aimed at reversing outflows and stabilising foreign exchange markets.

Indian Rupee Appreciates, Equity and Debt Markets Remain Range-Bound

The Indian rupee appreciated 0.4 percent to 95.39 against the US dollar after three consecutive sessions of weakness. The benchmark Nifty 50 remained range-bound between 23,300 and 23,500, gaining 14 points to trade at 23,430, while the BSE Sensex rose 87 points to 74,447 as of 11:38 IST.

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Top 8 Stock Ideas for Buying After RBI MPC Meeting Outcome

The RBI's measures are expected to support liquidity and capital inflows for equity and debt markets, while signaling a clear intent to anchor expectations and reduce volatility amid global oil shocks and sustained foreign selling pressure.