Anil Singhvi shares list of stocks to invest in to make the most of pause in interest rates

Zee Business Managing Editor Anil Singhvi believes it is the right time to chase interest rate-sensitive stocks on Dalal Street. He recommends investors to adopt a 'buy on dips' strategy in the market, where he sees the broader support range for the headline Nifty index at 17,350-17,425 levels. For the Nifty Bank gauge, whose 12 constituents include SBI, HDFC Bank and ICICI Bank, he sees support coming in at 40,000-40,200 levels.

The views of the market wizard come days after the RBI announced a status quo on the repo rate — the key interest rate at which the central bank lends money to commercial lenders — at 6.5 per cent as well as the policy stance, at "withdrawal of accommodation". RBI Governor Shaktikanta Das, however, said the decision of the Monetary Policy Committee (MPC) should be read only as the outcome of the April bi-monthly review, hinting at more hikes in the key lending rate, if needed. 

The RBI chief said the "war against inflation will continue", reiterating the MPC's commitment to controlling CPI within two per cent of its medium-term target of four per cent. Most economists believe that sticky consumer inflation might prompt the central bank to once again take aggressive rate hikes.   

Anil Singhvi says it's time to focus on interest rate-sensitive stocks

Anil Singhvi believes the time is apt to invest in interest rate-sensitive sectors. Interest rate-sensitive — also known as rate-sensitive — sectors are spaces that are prone to react to changes in benchmark interest rates; for instance, banking, financial services and automobile businesses.

"One needs to invest the money during the period of pause (in benchmark interest rates)... The first sign of reducing interest rates will trigger a life-time high in the Nifty50, regardless of how long the pause period is... The new high (in Nifty50) will be well above 18,800," said Singhvi. 

The current all-time high in the blue-chip benchmark stands at 18,887.6. 

Anil Singhvi shares 12 stocks to invest in from rate-sensitive sectors  

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The market expert shared a dozen stocks in total, spread across spaces such as real estate, automobiles and banks. His favourite spaces, in order of priority, to ride the pause in interest rates are: 

• Real estate
• Automobiles
• Banking

Earlier, Singhvi had identified five stocks to build wealth over the long term, including Larsen & Toubro (LT) and United Spirits (UNITDSPR). Read more on Anil Singhvi's wealth creation picks

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