Are interest rate cuts good for bank stocks? Well, it is a double-edged sword!

 


The initiation of a monetary easing cycle by the US Federal Reserve creates an opportunity for other emerging market central banks, including the RBI, to begin lowering interest rates by December 2024.

With some banks already trading at attractive valuations due to sustained selling by foreign institutional investors (FIIs), bank stocks are becoming a favored choice among investors in this new macroeconomic environment.

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