Check out these stocks on the crucial policy day

Even as punters are betting on rate cut in the RBI meet on Tuesday in the second half, it is worthwhile to analyse which stocks may show traction once rate cut is announced. Of course the risk remains that the rate cut does not happen and it will be interesting to see how the markets react as the markets seem to have discounted a rate cut this time around.

Normally the interest rate sensitive stocks are expected to gain momentum once the rate cut is announced. One should look at stocks in private banks, home finance companies, NBFCs and auto makers including two wheelers and four wheelers. Also stocks that belong to consumer staples and consumer durables can be expected to benefit once the rate cut is announced.

Momentum traders can focus on two wheeler stocks like Hero MotoCorp and TVS Motors. In four wheeler space traders have options a plenty with Maruti Suzuki, Tata Motors and Eicher Motors being the stocks in the segment that are showing lot of traction.

Bajaj Finserv, Indusind Bank, Yes Bank, Equitas, Bharat Financial Inclusion and Muthoot Finance in the financials sector are expected to gain traction if rate cut is announced. Home finance companies are to be watched out for with companies like Can Fin Homes, Repco Homes and DHFL expected to do well.

Momentum traders should also adequately cover for an adverse outcome i.e no rate cut announcement can drag markets lower.