RBI policy: Rate sensitive stocks in focus; top picks from banking, NBFC & realty space
RBI will announce its monetary policy and market participants believe that rate sensitive stocks including banks, NBFCs and realty stocks will remain in focus for the session today.
- Dec 5, 2025,
- Updated Dec 5, 2025 7:55 AM IST
Reserve Bank of India (RBI) will announce its last monetary policy for the current calendar year and market participants believe that rate sensitive stocks including banks, NBFCs and realty stocks will remain in focus for the session today. A dovish tone and outlook from RBI with rate cuts may push credit demand, funding costs and housing affordability.
India’s rates outlook ahead of the MPC meeting is a catch 22 situation; if we look at data of Q2FY26 real GDP growth surged past 8 per cent on strong consumption even as nominal GDP growth lags; headline CPI inflation has declined with food prices negative but core inflation near 4.40 per cent; while liquidity is comfortable VRRR has constrained easy rates, said Abhishek Bisen, Head of Fixed Income at Kotak Mahindra AMC.
"USD-INR seems to be the showstopper with sharp depreciation despite strong macro and abundant forex reserves at $688 billion. Global headwinds are adding to confusion. Current situation feels like bodyline bowling, and we have to see if RBI decides to go for a 6 with a cut of 25 bp or bows down with a dovish pause for now and keeps the strike and acts later." he said.
Kunal Shah, Technical research Analyst at Mirae Asset ShareKhan has picked three biggest beneficiaries from these sectors. "Within these themes, ICICI Bank, Chola Finance and Prestige Realty stand out technically as prime candidates for a short-covering-led rebound if policy cues turn supportive," he said. Check outlook and key levels for these counters:
ICICI Bank from Banks | Resistance: Rs 1,400-1,440 | Support: Rs 1,355
ICICI Bank has underperformed its private-sector peers in recent months and is now consolidating on the daily chart, making it well-positioned for a catch-up move if a rate cut triggers sector-wide optimism. The stock faces immediate resistance near Rs 1,400; a breakout above this level could fuel short covering towards Rs 1,440, while Rs 1,355 acts as a key support zone that traders may use as a reference for downside risk.
Cholamandalam Investment and Finance Company from NBFCs | Resistance: Rs 1,750 | Support: Rs 1,630
Chola Finance is trading in a narrow consolidation band near the lower end of its range, indicating accumulation rather than aggressive selling pressure. The stock remains in buy-on-dips mode with strong support around Rs 1,630 and an immediate hurdle near Rs 1,750; a move past Rs 1,750 can unleash fresh momentum and potentially drive prices toward new all-time highs.
Prestige Estates Projects from Real Estate | Resistance: Rs 1,700-1,900 | Support: Rs 1,600
Realty counters have been among the weakest performers lately and many names are now in oversold territory, making the space highly sensitive to any RBI rate cut that could revive sentiment and affordability. Prestige Realty is technically well placed, with firm support around Rs 1,600 and resistance at Rs 1,700; a sustained break above Rs 1,700 could accelerate a sharp short-covering rally toward the Rs 1,900 zone, symbolising broader re-rating potential in the realty pack.
What's in for equity markets
After a decent rebound in October, November was another volatile month for Indian markets, which could not sustain record levels. Market participants are expecting another rate cut from the US Federal Reserve in the next week amid weaker consumption indicators and broadly cooling labour conditions.
ASK Investment Managers continues to maintain a disciplined focus on India’s long-term growth story and domestic-oriented companies in the current environment of uncertainty. "Our conviction in large caps remains strong, given their proven resilience, superior fundamentals, and ability to weather uncertainty," it said.
Global investors are expecting a rate cut in December 2025 from the US Fed, amid weaker consumption indicators and broadly cooling labour conditions. As markets navigate global policy shifts and uneven earnings, we believe that staying anchored in robust businesses with clear growth visibility is the most effective way to participate in India’s ongoing economic transformation, ASK adds.
Reserve Bank of India (RBI) will announce its last monetary policy for the current calendar year and market participants believe that rate sensitive stocks including banks, NBFCs and realty stocks will remain in focus for the session today. A dovish tone and outlook from RBI with rate cuts may push credit demand, funding costs and housing affordability.
India’s rates outlook ahead of the MPC meeting is a catch 22 situation; if we look at data of Q2FY26 real GDP growth surged past 8 per cent on strong consumption even as nominal GDP growth lags; headline CPI inflation has declined with food prices negative but core inflation near 4.40 per cent; while liquidity is comfortable VRRR has constrained easy rates, said Abhishek Bisen, Head of Fixed Income at Kotak Mahindra AMC.
"USD-INR seems to be the showstopper with sharp depreciation despite strong macro and abundant forex reserves at $688 billion. Global headwinds are adding to confusion. Current situation feels like bodyline bowling, and we have to see if RBI decides to go for a 6 with a cut of 25 bp or bows down with a dovish pause for now and keeps the strike and acts later." he said.
Kunal Shah, Technical research Analyst at Mirae Asset ShareKhan has picked three biggest beneficiaries from these sectors. "Within these themes, ICICI Bank, Chola Finance and Prestige Realty stand out technically as prime candidates for a short-covering-led rebound if policy cues turn supportive," he said. Check outlook and key levels for these counters:
ICICI Bank from Banks | Resistance: Rs 1,400-1,440 | Support: Rs 1,355
ICICI Bank has underperformed its private-sector peers in recent months and is now consolidating on the daily chart, making it well-positioned for a catch-up move if a rate cut triggers sector-wide optimism. The stock faces immediate resistance near Rs 1,400; a breakout above this level could fuel short covering towards Rs 1,440, while Rs 1,355 acts as a key support zone that traders may use as a reference for downside risk.
Cholamandalam Investment and Finance Company from NBFCs | Resistance: Rs 1,750 | Support: Rs 1,630
Chola Finance is trading in a narrow consolidation band near the lower end of its range, indicating accumulation rather than aggressive selling pressure. The stock remains in buy-on-dips mode with strong support around Rs 1,630 and an immediate hurdle near Rs 1,750; a move past Rs 1,750 can unleash fresh momentum and potentially drive prices toward new all-time highs.
Prestige Estates Projects from Real Estate | Resistance: Rs 1,700-1,900 | Support: Rs 1,600
Realty counters have been among the weakest performers lately and many names are now in oversold territory, making the space highly sensitive to any RBI rate cut that could revive sentiment and affordability. Prestige Realty is technically well placed, with firm support around Rs 1,600 and resistance at Rs 1,700; a sustained break above Rs 1,700 could accelerate a sharp short-covering rally toward the Rs 1,900 zone, symbolising broader re-rating potential in the realty pack.
What's in for equity markets
After a decent rebound in October, November was another volatile month for Indian markets, which could not sustain record levels. Market participants are expecting another rate cut from the US Federal Reserve in the next week amid weaker consumption indicators and broadly cooling labour conditions.
ASK Investment Managers continues to maintain a disciplined focus on India’s long-term growth story and domestic-oriented companies in the current environment of uncertainty. "Our conviction in large caps remains strong, given their proven resilience, superior fundamentals, and ability to weather uncertainty," it said.
Global investors are expecting a rate cut in December 2025 from the US Fed, amid weaker consumption indicators and broadly cooling labour conditions. As markets navigate global policy shifts and uneven earnings, we believe that staying anchored in robust businesses with clear growth visibility is the most effective way to participate in India’s ongoing economic transformation, ASK adds.