Here's how you can save on interest after RBI's repo rate cut
The
RBI
's recent 0.5%
repo rate
cut to 5.5% brings relief to
home loan
borrowers by lowering monthly EMIs. Most new home loans in India are linked to the repo rate through the Repo Linked Lending Rate (RLLR) system, meaning you'll likely see reduced interest rates soon. For example, a 20-year home loan could see its EMI drop significantly, putting extra cash in your pocket each month. Larger loans will yield even bigger savings (see graphic). Banks like Canara or UCO have already cut rates to 7.75%, but some private banks may take a few months to pass on the full benefit, so check with your lender. With reduced EMIs, you can use the extra money for daily expenses, savings, or paying off your loan faster to save more interest. To make the most of this, confirm the rate cut has been applied to your loan and consider increasing your EMI slightly to shorten the loan term.
Interest savings after RBI repo rate cut
Interest rates fall, EMIs shrink, and long-term savings grow for home loan borrowers.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
an hour ago
- Time of India
RBI keeping a close watch on newly-licensed payment firms
The Reserve Bank of India has tightened its scrutiny of newly licensed payment aggregators with regular audits and close inspection of the procedures they follow, according to industry executives. After the regulator brought digital payments within its ambit, it is also trying to ensure that payment firms do not have any loose ends through which fraudsters can get access to the wider banking ecosystem. 'One of the things the RBI wants to know is if these merchants are genuine, if they are actual online businesses,' said a chief executive officer of a payments firm, requesting not to be named. 'The idea is to keep the ecosystem free from fraudulent merchants.' KYC (know your customer) is one important aspect that the RBI is looking at very closely, the people cited earlier said. There is a draft proposal that the regulator had circulated regarding making full KYC mandatory for every merchant being onboarded by payment aggregators. The circular is yet to be implemented. ETtech Live Events The executive cited earlier further said RBI officials are also calling up field staff to check if KYC procedures laid out by the company are being followed by agents on the ground. Discover the stories of your interest Blockchain 5 Stories Cyber-safety 7 Stories Fintech 9 Stories E-comm 9 Stories ML 8 Stories Edtech 6 Stories Payout is an important area of concern for the payments industry, people said. Payouts are processed when any business instead of accepting payments wants to pay either its vendors, cashbacks to customers or process ecommerce returns. 'The question the industry is pondering over is how should these payouts be processed, if they need to be moved via the settlement accounts only,' the executive cited earlier said. The regulator has given out licences to some 54 companies which are allowed to operate as online payment processing entities. Now it wants to ensure that these companies are strictly abiding by norms with regards to supporting payments for online merchants. 'We have always been scrutinised by banks, but bank audits were mostly procedural, something which we were used to, but now RBI audits have become much more stringent and they want to ensure that the rules are being followed across the organisation,' a senior executive at a payments firm said. The RBI is also pushing these fintechs, which in most cases are venture-funded startups, to have strict board-approved policies followed by the management teams. 'We have added professional independent directors to the board now and have changed many approval systems in a way that it abides by regulatory protocol. There is more hygiene that the RBI is trying to bring in,' said another chief executive officer at a Mumbai-based digital payments major. PhonePe recently appointed accomplished banker Zarin Daruwala to its board as an independent director. Earlier this year, PayU had appointed Renu Sud Karnad, former managing director at HDFC, as the chairperson. While on a monthly basis, there is data sharing with the regulator, officials also turn up at their offices on short notice, industry insiders said. 'We had an instance where officials informed us on Friday evening that they will be coming on Monday,' said the executive cited above. Overall, the message that the RBI wants to give to this emerging sector is that they need to put systems in place and stick to them. A founder at a payments firm also pointed out that the RBI is not expecting these firms who are new to the regulatory regime to already have everything in place. But it wants founders to be honest about the progress and remain transparent about it. As the Indian digital payments ecosystem grows, the RBI is also trying to ensure that these firms closely follow the best practices of the financial services industry. Previously, players such as Razorpay and Cashfree had faced regulatory ire when their customer onboarding was completely brought to a stop. Paytm needed to get government clearance regarding their international investments. PayU needed to get its Indian corporate entity to keep the RBI satisfied. The Naspers-backed company managed to get the final PA licence only in May 2025.
Mint
2 hours ago
- Mint
Best stock recommendations today: MarketSmith India's top picks for 12 June
On Wednesday, Nifty 50 closed with a modest gain at 25,141 as profit-booking in financial and banking stocks weighed on sentiment. The market's mood remained cautious amid mixed global cues ahead of key US-China trade talks. Gains in IT, pharma, and energy stocks helped offset losses in PSU banks and FMCG. While the RBI's supportive stance offered some comfort, stretched valuations and muted global trends limited the upside. Meanwhile, the smallcap and midcap indices ended their multi-session winning streak, declining due to broad-based profit booking. Two stock recommendations for today by MarketSmith India Also read: Rally in SBI Card may have priced in improved outlook How Nifty 50 performed on 11 June Bulls staged a comeback on Wednesday, pushing Nifty 50 above 25,200 intraday for the first time since 15 October 2024. However, the index was unable to sustain those gains and closed with only a marginal upside. The session's price action led to the formation of a Doji candle on the daily chart, signaling indecision and a tug-of-war between bulls and bears. PSU banks, financial services, and FMCG stocks underperformed due to profit booking, while IT, pharma, and energy stocks outperformed. Broader market participation was largely neutral, as reflected in a balanced advance-decline ratio of about 1:1. From a technical perspective, the index continues to trade above all its key moving averages across multiple timeframes, reinforcing the underlying bullish sentiment. The relative strength index (RSI) has turned upward and is currently hovering near 62–63, reflecting strengthening momentum. However, the MACD remains in a negative crossover, indicating that a clear bullish confirmation is yet to emerge. Importantly, a recent golden crossover, where the 50-DMA crosses above the 200-DMA, has formed on the daily chart, signaling a potential resurgence in medium- to long-term bullish momentum. Also read: Bata's turnaround is taking time—and the market's patience is wearing thin According to O'Neil's methodology of market direction, Nifty has reclaimed its recent high of 25,116 and is now trading firmly above all its key moving averages. As a result, the market condition has been upgraded from an uptrend under pressure to a confirmed uptrend. Nifty 50 closed the session on a positive note, reclaiming its recent high and confirming its ongoing bullish trend. The index is once again approaching its resistance zone, and a decisive breakout above 25,200 could pave the way for an extended rally toward 25,700–25,800. On the downside, immediate support is positioned around 24,600, which may act as a cushion in the event of any pullbacks. How did Nifty Bank perform? On Wednesday, Nifty Bank opened flat and remained in negative territory for the majority of the session. Nifty Bank has formed a second consecutive bearish candle on the daily chart with a lower-high and lower-low price structure. The index lost around 0.30% intraday. From a technical perspective, the index maintains a robust position, above its key moving averages across all major timeframes, reinforcing its strong bullish momentum. The RSI continues its upward trajectory on both the daily and weekly charts, currently hovering near 63 on the daily timeframe. The daily MACD indicator is exhibiting a positive crossover, remaining above the central line on both the daily and weekly charts, further supporting the bullish outlook. Also read: Lower crude brings relief to Mahanagar Gas amid falling APM gas allocation According to O'Neil's methodology of market direction, Nifty Bank recently transitioned from an uptrend under pressure to a confirmed uptrend, highlighting renewed strength and resilience in the broader trend. The index continues to display a strong bullish sentiment across multiple timeframes, trading in record territory. However, it faces resistance near 57,000, which has limited its gains over the past few sessions. While the overall bullish trend and sentiment point to a likely continuation of the uptrend, a phase of technical consolidation around these all-time high levels remains a possibility. The index could establish a broad trading range between 56,000 and 57,000 before potentially resuming its upward trajectory toward 58,500–59,000 in the coming days. MarketSmith India is a stock research platform and advisory service focused on the Indian stock market. It offers tools and resources to help investors make informed decisions based on the CAN SLIM methodology, founded by legendary investor William J. O'Neil. You can access a 10-day free trial by registering on its website. Trade name: William O'Neil India Pvt. Ltd. Sebi Registration No.: INH000015543 Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.
Mint
2 hours ago
- Mint
Top three stocks to buy today, 12 June, as recommended by Ankush Bajaj
On Wednesday, 11 June, the Nifty 50 closed at 25,141.40, gaining 37.15 points or 0.15%. The index traded within a tight but elevated intraday range between 25,081.30 and 25,222.40, indicating a continued phase of consolidation near record highs. Notably, a large Doji candle formed on the daily chart, signalling indecision and equilibrium between bulls and bears, despite positive price action. Still, the Nifty's ability to close well above the psychological 25,000 level underscores its underlying strength and keeps the bullish narrative intact. Top three stocks recommended for today by Ankush Bajaj Bharat Petroleum Corp. Ltd (current price: ₹333.85) Why it's recommended: The stock recently gave a bullish pennant breakout on the daily chart, supported by strong momentum. RSI stands at 67 and is rising, indicating improving momentum. The MACD is on the positive side, reinforcing bullish sentiment. On lower time frames, the stock has given a rectangle breakout, adding to the short-term bullish outlook. If the stock sustains above the breakout zone, it is likely to advance toward ₹352 in the short term. Key metrics: Resistance level: ₹352 (short-term target), Support level: ₹325 (pattern invalidation level) Pattern: Bullish pennant breakout on the daily chart, rectangle breakout on lower time frames RSI: 67, rising, indicating strengthening momentum Technical analysis: The breakout above the consolidation range is supported by momentum and confirmed by MACD on the lower time frame. The stock is trading above its key moving averages, which supports trend continuation. Risk factors: The stock has shown upward movement recently, making it susceptible to short-term volatility. A drop below ₹325 could trigger quick profit-taking. Monitor volume and price closely for follow through. Buy at: ₹333.85 Target price: ₹352 in 4–5 days Stop loss: ₹325 Also Read: Affordable housing financiers get a RBI rate cut boost. But it may not last. Infosys Ltd (current price: ₹1,631) Why it's recommended: The stock is showing strong momentum with the daily RSI at 65 and rising, indicating building strength. On the daily chart, INFY is poised to break out of a reverse head and shoulders pattern, a bullish reversal signal. Additionally, on the lower time frame, the stock has formed a falling wedge breakout on the upside, further supporting the bullish view. If the breakout sustains, the stock is likely to head toward ₹1,670– ₹1,680 in the short term. Key metrics: Resistance level: ₹1,670– ₹1,680 (short-term target range), Support level: ₹1,610 (pattern invalidation level) Pattern: Reverse head and shoulders breakout (daily), falling wedge breakout (lower time frame) RSI: 65, rising, indicating strengthening momentum Technical analysis: The breakout is supported by improving RSI and positive price action. The falling wedge breakout on lower time frames complements the larger pattern setup. Price is trading above key moving averages, reinforcing trend strength. Risk factors: The stock has moved up steadily in recent sessions and could face short-term profit booking. A fall below ₹1,610 would invalidate the current pattern setup. Monitor closely for follow-through post-breakout. Buy at: ₹1,631 Target price: ₹1,670– ₹1,680 in 4–5 days Stop loss: ₹1,610 Also Read: As India looks to attract global EV makers, these five companies could win big Tata Consultancy Services Ltd (current price: ₹3,471.90) Why it's recommended: The stock is showing strong momentum with the daily RSI above 60 and rising, indicating building strength. On the daily chart, TCS is poised to break out of an inverse head and shoulders pattern, a bullish reversal signal. Additionally, on the lower time frame, the stock has formed a falling wedge breakout on the upside, further supporting the bullish view. If the breakout sustains, the stock is likely to head toward ₹3,512– ₹3,520 in the short term. Key metrics: Resistance level: ₹3,512– ₹3,520 (short-term target range) Support level: ₹3,448 (pattern invalidation level) Pattern: Inverse head and shoulders breakout (daily), falling wedge breakout (lower time frame) RSI: 60+, rising, indicating strengthening momentum Technical analysis: The breakout is supported by improving RSI and positive price action. The falling wedge breakout on lower time frames complements the larger pattern setup. Price is trading above key moving averages, reinforcing trend strength Risk factors: The stock has moved up steadily in recent sessions and could face short-term profit-booking. A fall below ₹3,448 would invalidate the current pattern setup. Monitor closely for follow-through post-breakout. Buy at: ₹3,471.90 Target price: ₹3,512– ₹3,520 in 2–4 days Stop loss: ₹3,448 How the market performed on 10 June The Nifty 50 closed just 37.15 points higher, up 0.15%, at 25,141.40. The BSE Sensex also managed modest gains, rising 123.42 points or 0.15%, to finish at 82,515.14. On the other hand, the Nifty Bank came under pressure, declining 169.35 points or 0.30%, to settle at 56,459.75. Sector-wise, Pharma led the gainers with a rise of 0.50%, followed by Energy up 0.30%, and the Healthcare index that added 0.25%. On the losing side, the PSU Bank sector declined the most by 0.88%, while the FMCG index fell 0.67%, and the Banking index ended down 0.30%. Also Read: Behind ICICI Lombard's recent surge: What the headlines won't tell you In stock-specific action, HCL Tech led the gainers with a strong 3.23% rally, followed by Infosys, up 2.20%, and Tech Mahindra, gaining 1.65%. Among the top losers were Shriram Finance, which dropped 2.05%, Power Grid, falling 1.86%, and Adani Enterprises, down 1.22%. Nifty technical analysis daily and hourly Technically, the Nifty continues to trade above all its key moving averages. The 20-day Simple Moving Average (SMA) now stands at 24,856, while the 40-day Exponential Moving Average (EMA) is placed at 24,480. On the intraday timeframes, the index remains comfortably positioned, with the 20-hour SMA at 25,132 and the 40-hour EMA at 24,011. Importantly, the falling wedge breakout pattern identified earlier on the 45-minute chart has played out successfully, with the immediate target around 25,200 achieved. The index now awaits fresh cues for the next leg higher. Momentum indicators suggest a moderately bullish undertone. The daily RSI has ticked up slightly to 62, reflecting sustained strength, while the hourly RSI has eased to 57, indicating a brief consolidation in the short term. The MACD indicators remain positive, with the daily MACD at 202 and the hourly MACD at 64, showing continued bullish momentum with no signs of exhaustion yet. However, the derivatives data paints a more cautious picture. Total Call Open Interest (OI) now stands at 176.1 million, compared to 153.2 million in Puts, resulting in a bearish differential of -22.9 million. The trend remains negative on the OI front, as the Call OI change of 679,800 outweighs the Put OI change of 491,200, leading to a net bearish differential of -188,600. The highest Call OI continues to build at the 26,000 strike, with notable additions at the 25,250 strike. On the Put side, the maximum OI is still concentrated at the 25,000 strike, while the highest addition is now seen at 25,200—indicating that bulls are attempting to build fresh support closer to current market levels. The overall Put-Call Ratio remains subdued, reflecting a cautious bias among traders. Volatility remained in check, with the India VIX falling by another 2.48% to close at 13.66, its lowest reading in recent sessions. This sharp drop in volatility indicates growing investor confidence and reduced fear, often a precursor to stronger directional moves when paired with positive price action. In summary, the Nifty's steady close above the 25,100 mark, coupled with improving technical and global cues, suggests ongoing resilience. However, the large Doji candle and bearish bias in derivatives data call for a cautious approach in the immediate term. A decisive breakout above 25,250 could pave the way toward the 25,300–25,400 zone, while immediate support is seen at 25,000, followed by a broader base between 24,800 and 24,600. Traders should stay nimble and monitor global signals and institutional flows for fresh directional triggers. Ankush Bajaj is a Sebi-registered research analyst. His registration number is INH000010441. Investments in securities are subject to market risks. Read all the related documents carefully before investing. Registration granted by Sebi and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors. Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.
