How Increasing Repo Rate Can Influence Investment Decisions?

The Reserve Bank of India hiked its key repo rate by 25 basis points (bps) to 6.50 percent recently. The central bank said that its policy stance remains focused on the withdrawal of accommodation.

Why should millennials investors care about repo rates?

The stock market and repo rates have an inverse relationship. This happens because an increase in the repo rate could sometimes result in companies cutting back on their expansion plans which could eventually slowdown growth, profit and future cash flows. All of this combined together could result in a fall in stock prices.

If this happens in multiple companies, then that would impact the market significantly. However, this change is sector dependent too. Sectors like capital goods, infrastructure, and the like could see a stronger impact as opposed to sectors like IT or FMCG.

Importance of an investment partner

At such times when the volatility is high and shift is happening, the dependency on research backed advisory arises. Though today, artificial intelligence is allowing platforms to identify complex trading patterns on a large scale, across stock and commodity markets in real-time but a layer of physical advisory is required to address these unique situational needs. This is where Full-Service brokers like Motilal Oswal come in with their Phygital approach. Their 35+ years of experience in equity market, research backed advices and Phygital approach offers all that an investor would need. Motilal Oswal offers a digital presence with its Trader and Investor App and also covers more than 550 cities & 5500+ physical locations enabling face-to-face interactions with dedicated advisors. The apps are designed to provide an advanced, dynamic, and hassle-free trading/investing experience with its AI tool and 50+ indicators. Thus bringing together the brand's unique Phygital approach that combines the best of both worlds.

Access to real time data and research reports from trusted platforms that have years of market experience can help navigate market volatility especially during events like Union Budget and Repo Rate changes. Thus creating a world of Phygital that helps people make well informed and personalised investment decisions is the need of the hour.

Incisive decision making needs to be backed by research and people who understand every minute detail that can impact investments. The right investment partner such as Motilal Oswal, which has 35 years of unparalleled research and equity experience & provides stock recommendation, could be your ideal partner.

Phygital is the new normal

Phygital is the perfect culmination of physical and digital. It is a fusion of state-of-the-art digital technology with physical interaction. Broking firms like Motilal Oswal have developed Artificial Intelligence-based products, user-friendly interface, smart trading platforms across web, mobile, and apps. Market is all about timing, hence a right advisory can help you in planning your investment as per your unique financial short term & long term needs. Explore the Phygital way of investing today.