New Delhi, June 5 -- Global outlook remains clouded because of the uncertain policy environment and elevated interest rate. In India, too, demand is showing signs of fatigue. However, corporates continue to generate healthy cash flows, but subdued demand has led to a slowdown in both capital expenditure and operational spending. But the RBI's record dividend of Rs 2.69 lakh crore has given ample room to the government for fiscal support.

Against this backdrop, a report by Nuvama says the Reserve Bank of India (RBI) should go for a 25 basis point repo rate cut to support growth.

The report mentioned, "We anticipate the MPC to cut rate by 25bp and potentially guide for more cuts. Demand conditions continue to often, as seen in slowing cre...