A rate cut of 35 Basis point by RBI is along the unexpected line and will certainly help to increase liquidity. Increased limits for exposure limit to single NBFCs from lending bank up to 20% will help revive the lending activities of NBFCs. No change in Cash Reserve Ratio is a bit disappointing. RBI acknowledged the slowdown in domestic as well as external demand and revised the Real GDP growth down to 6.9% from 7. Overall, RBI's response is appropriate for the liquidity crisis, but its effectiveness will depend on the transmission of benefits of lower rates to end-users. I see an immediate positive impact on real estate, two-wheeler, and consumer durable companies ahead of the festival season. Hero MotoCorp, TVS Suzuki, DLF, Asian Paints and Godrej Properties.