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The Central Bank of America, Federal Reserve, has announced a rate cut for the first time in nearly 4 years. With this, the rate relief has begun. Experts say that the decision of the Federal Reserve is expected to boost everything from the stock market to gold. It is estimated that the money released in the market after the rate cut can give a new boost to everything from shares to gold and can also increase pressure on the dollar.

 

 

Experts say that the impact of the decision will be seen on IT and Pharma. Because, after the Fed, RBI can also take a decision soon. Banking and financial companies will directly benefit from the loan becoming cheaper. That is why investors have been eyeing this sector till now. Companies which have a lot of debt will also benefit from the reduction in interest rates.

 

 

Due to cheaper loans, these companies will have to pay less money to banks as interest, which will increase their profits. Experts say that the impact will be seen on IT and Pharma. But before the decision, they are under pressure because economic slowdown is also a concern.

 

 

Banking shares will gain momentum! Now after the reduction in interest rates, there will be a rise in securities i.e. bonds, in such a situation banking shares can get benefit. Because, RBI can also take a decision to reduce interest rates after the Fed. This decision will be taken in the first week of October. Banks will get capital gains due to the increase in bond yield in this period. Therefore, its effect will be seen on income and profits.

 

 

Housing finance companies can also get another benefit because RBI will soon reduce interest rates. Hence, the demand for cheap loans is expected to increase.

 

IT and Pharma's tension may increase- Rupee is expected to strengthen. In such a situation, there will be a negative impact on exporting companies. Pressure on IT and Pharma may increase.

 

 

What will be the impact on which sector- Banking sector- Banking and financial companies will directly benefit from cheaper loans. That is why investors are now eyeing this sector.

 

Realty sector- This news can be very encouraging for the realty companies which are facing continuous problems. Market experts say that the demand in the sector is expected to increase due to reduction in housing loan rates.

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