Why rate-sensitive stocks aren't attractive yet?

There is disagreement on whether RBI’s latest rate cut can revive demand

A rate-cut by the RBI has widely been considered as a panacea for all things wrong with the Indian economy. So much so that after the recent 50 basis points-cut, a section of the business media referred to Raghuram Rajan as ‘Santa Claus’. Despite this largesse, not all analysts think that this monetary policy action is enough to turn bullish on rate-sensitive stocks. Auto and realty are facing headwinds due to weak demand. For the first five months of FY16, India’s auto sales posted an anaemic growth of 1.8% y-o-y. The impact of poor monsoon on farm income doesn’t give much reason to expect any improvement in the rest of FY16 either. In real estate, the exorbitant residential segment continues to be the Achilles’ heel. Sales have stalled with unsold inventory at an all-time high.