RBI cuts policy rate: Consumption themes will stay in favour

Higher rural incomes, pay commission benefits, lower interest rates key positives: Analysts

The markets might have been unimpressed by the Reserve Bank of India (RBI)’s rate cut of 25 basis points, as being largely along expectations and priced in. Yet, investors could take some cues  from the event. A clear indication is that consumption demand is likely to remain healthy, aided by rural India. A consecutive normal monsoon so far, leading to a good kharif crop, and a boost to rural demand from the higher budgetary allocation to housing in these areas, would be influencers. Farm loan waivers are a bad word for state finances, as these are likely to compel a