Rate cut a near certainty: Here are stocks that will make hay while the Sun shines

With interest rate cut almost a certainty, market players may well be advised to look at the interest rate sensitive stocks.

Demonetisation has led to surge in deposits with banks, and as the loan book is not increasing at an acceptable pace, experts believe interest rate cut is on cards and indeed rate cut is the only option now to provide impetus to improve loan disbursals.

Lower interest rates may help banks fight the non performing assets' (NPA's) issue plaguing the banking system in India.

Auto stocks like Tata Motors, Maruti Suzuki, Mahindra & Mahindra along with private banks like HDFC Bank, Yes Bank & IndusInd Bank can rally based on the rate cut announcement. Select housing finance companies like Repco Homes, HDFC, Indiabull Housing Finance, etc.,  may also sizzle on the announcement.

Current demonetisation move has put the economy on a standstill; and the SME sector along with several other sectors, needless to mention the plight of the unorganised sector, need some sort of lifeline, in the wake of which interest rate cut could just inject that much needed new lease of life into these sectors.