Vedanta, Tata Steel, JSW Steel, Jindal Steel shares gain post RBI rate cut; here's why
The RBI cut repo rate by 25 basis points to 6.25% on Friday. A reduction in the key lending rate is expected to add to demand for loans for infra and the real estate sectors.
- Feb 7, 2025,
- Updated Feb 7, 2025 1:59 PM IST
Shares of Tata Steel, JSW Steel, Jindal Steel and Power, Vedanta, NMDC, SAIL and Hindalco rose up to 5% today after the RBI cut its repo rate for the first time in five years. The RBI cut repo rate by 25 basis points to 6.25% on Friday. A reduction in the key lending rate is expected to add to demand for loans for infra and the real estate sectors.
Experts said the rate cut is a boost for the economy as it will spur demand for home loans, auto loans and funds for the infra sector. More demand in the housing and auto sector will need additional supply of metals, thereby boosting sentiment around the metal stocks today.
Tata Steel shares jumped around 4 per cent to Rs 137.75 on BSE today against the previous close of Rs 132.55. Market cap of the firm rose to Rs 1.71 lakh crore. Jindal Steel and Power stock gained 4.81% to Rs 848.60 against the previous close of Rs 809.60. Market cap of the firm climbed to Rs 86,233 crore.
Shares of JSW Steel rose over 3.23% to Rs 978.55 against the previous close of Rs 947.90 on BSE. Steel Authority of India also added over 2% to Rs 110.90.
Shares of Vedanta climbed nearly 3% to Rs 456.20 against the previous close of Rs 443.80. Market cap of the firm rose to Rs 1.77 lakh crore. Hindalco stock rose 2.46% to Rs 608.20 against the previous close of Rs 595.30 on BSE. Market cap of the firm rose to Rs 1.36 lakh crore.
Another metal stock NMDC climbed nearly 3% to Rs 67.09 with a market cap of Rs 58,949 crore.
On similar lines, the BSE realty index rose 741 points intra day to 28,977 against the previous close of Rs 28,236.
Robin Arya, smallcase Manager and Founder, GoalFi said, "The RBI’s decision to cut the repo rate by 25 basis points to 6.25% is a significant move, especially as this is the first rate cut in five years. This reduction directly benefits loan borrowers, as banks are likely to pass on lower interest rates, making EMIs more affordable. Lower borrowing costs can boost home loans, auto loans, and business credit, which in turn supports overall economic activity."
The central bank projected GDP growth for the next fiscal at 6.7% and kept its inflation forecast unchanged for the current financial year. It has kept the Consumer Price Index (CPI) inflation projection at 4.8 percent.
The central bank expects GDP growth for the next fiscal at 6.7% and kept its inflation forecast unchanged for the current financial year. It has kept the Consumer Price Index (CPI) inflation projection at 4.8 percent.
Shares of Tata Steel, JSW Steel, Jindal Steel and Power, Vedanta, NMDC, SAIL and Hindalco rose up to 5% today after the RBI cut its repo rate for the first time in five years. The RBI cut repo rate by 25 basis points to 6.25% on Friday. A reduction in the key lending rate is expected to add to demand for loans for infra and the real estate sectors.
Experts said the rate cut is a boost for the economy as it will spur demand for home loans, auto loans and funds for the infra sector. More demand in the housing and auto sector will need additional supply of metals, thereby boosting sentiment around the metal stocks today.
Tata Steel shares jumped around 4 per cent to Rs 137.75 on BSE today against the previous close of Rs 132.55. Market cap of the firm rose to Rs 1.71 lakh crore. Jindal Steel and Power stock gained 4.81% to Rs 848.60 against the previous close of Rs 809.60. Market cap of the firm climbed to Rs 86,233 crore.
Shares of JSW Steel rose over 3.23% to Rs 978.55 against the previous close of Rs 947.90 on BSE. Steel Authority of India also added over 2% to Rs 110.90.
Shares of Vedanta climbed nearly 3% to Rs 456.20 against the previous close of Rs 443.80. Market cap of the firm rose to Rs 1.77 lakh crore. Hindalco stock rose 2.46% to Rs 608.20 against the previous close of Rs 595.30 on BSE. Market cap of the firm rose to Rs 1.36 lakh crore.
Another metal stock NMDC climbed nearly 3% to Rs 67.09 with a market cap of Rs 58,949 crore.
On similar lines, the BSE realty index rose 741 points intra day to 28,977 against the previous close of Rs 28,236.
Robin Arya, smallcase Manager and Founder, GoalFi said, "The RBI’s decision to cut the repo rate by 25 basis points to 6.25% is a significant move, especially as this is the first rate cut in five years. This reduction directly benefits loan borrowers, as banks are likely to pass on lower interest rates, making EMIs more affordable. Lower borrowing costs can boost home loans, auto loans, and business credit, which in turn supports overall economic activity."
The central bank projected GDP growth for the next fiscal at 6.7% and kept its inflation forecast unchanged for the current financial year. It has kept the Consumer Price Index (CPI) inflation projection at 4.8 percent.
The central bank expects GDP growth for the next fiscal at 6.7% and kept its inflation forecast unchanged for the current financial year. It has kept the Consumer Price Index (CPI) inflation projection at 4.8 percent.