Stock picks: Stock picks of the week: 5 stocks with consistent score improvement and return potential of more than 28% in 1 year

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Synopsis

While the bulls were clearly making a comeback, the RBI’s move to cut both the repo rate and CRR has just helped them some more. Now, there are two schools of thought on the RBI move. One says a cut in interest rate suggests the economy is slowing and requires a push. The other says that boosting liquidity and giving cash in people’s hands, when done in time, aids a faster recovery. Whatever be the case, the one thing to keep an eye on is inflation. Our selected stocks for today depict a strong upward trajectory in their overall average score which is based on five key pillars: Earnings, fundamentals, relative valuation, risk, and price momentum. This implies that there has been a significant improvement in their market outlook in the given time frame.

While the street was expecting a rate cut, what has come as a surprise is the quantum of the cut. Also that the repo and CRR cuts came together. The CRR cut would release liquidity into the system. It should lower the cost of funds. What needs to be watched is whether the transmission of the rate cuts is fast enough. Even before the rate cut, the street was largely under the influence of bulls. And that was due to the fact that the Q4 earnings

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