The Reserve Bank of India on Thursday said it would conduct long-term repo operations, whereby it would inject money into the banking system at the policy repurchase rate for one and three years.
Four-year sovereign bonds are now yielding 6.07 percent dropping about 14 basis points since Wednesday.
With economy showing visible signs of green shoots, RBI decided to focus on taming inflation.
The Nifty Realty index was trading 0.12 per cent down at 326.
The Nifty Auto index was trading 0.55 per cent up at 8176.05 .
If the thousands of stuck projects all over the country get completed, not only will the NPL issue get partly addressed, but more importantly, it will give confidence to home buyers to purchase real estate in a stronger manner, says Keki Mistry, VC & CEO, HDFC.
There will be no downgrade of commercial realty loans if the delay is genuine, said RBI.
The Reserve Bank of India held key policy rates in its policy review today to keep the delicate balance between inflation management and revival of growth.
The Nifty Bank index was trading 0.18 per cent up at 31057.25 .
"USDINR pair is expected to quote in the range of 71.05 and 71.50,” said Motilal Oswal Financial Services.
When bond yields dip, prices of the instruments rise.
Over 700 companies will announce their financial results for the December quarter this week.
The excess supply of funds has pulled rates on 4-year & 3-year sovereign bonds down 28-37 bps.
The pro-rata allotment set by the RBI was at 12.86 per cent.
Patra said indicators were not offering evidence yet that the downturn was bottoming out.
Foreigners bought Rs 136.7 billion ($1.9 billion) of the debt in the first two weeks of Feb.
The RBI Governor said inflation was broadly in line with their expectations.
The benchmark one-year tenor MCLR will now be 8.25 per cent as compared to the existing 8.30 per cent.
At the interbank foreign exchange market, the local currency opened at 71.25.
The dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.07 per cent to 97.79.
Total income, however, fell to Rs 536.53 crore in the third quarter of 2019-20.
Analysts expect the flows into MFs to gather further momentum in the coming months.
From a long-term perspective, the Budget has a lot of ingredients to drive economic growth.
Expect a range-bound trade on the Nifty with more stock specific actions.
With a favourable RBI policy, the markets scaled past the 12,000 mark again in a week.
The issue of lack of monetary transmission hasn't cropped up suddenly and is something that has been a matter of concern for the RBI in ensuring the pass-through of its policy decisions. The matter snowballed in the last few months after the RBI observed that the effects of its rate cuts are not being felt in terms of interest rates coming down.
Mutual fund inflows will gather further momentum in the coming months, Union Asset Management Company CEO G Pradeepkumar said.
What are the top investment ideas from top D-Street honchos? Here’s a clue.
Industrial production and retail inflation data is due on Wednesday, while WPI inflation numbers will be released on Friday.
RBI today surprised everyone by keeping the policy rates unchanged, contrary to expectations of 15-25 bps cut.
The Nifty Realty index was trading 0.47 per cent up at 286.70.
The Nifty Auto index was trading 0.28 per cent up at 8019.2 .
The Nifty Bank index was trading 0.21 per cent up at 32,047.10 .
The transmission has been slow for new loans even as RBI cut the benchmark policy rate by 135 basis points since February 2019 but it was non existent or negative for existing borrowers. Some existing borrowers had paid monthly instalments at higher rates during the same period.
"USDINR pair is expected to quote in the range of 71.10 and 71.50,” said Motilal Oswal Financial Services.
La Opala RG and Radico Khaitan emerged as new entrants in the AMC’s portfolio.
With no change in key policy rates, the repo rate currently stands at 5.15 per cent and reverse repo rate at 4.90 per cent. FD investors can heave a sigh of relief as there will be no downward pressure on interest rates in the economy.
The repo rate now stands at 5.15 per cent, the lowest since March 2010.
At the interbank foreign exchange market, the local currency opened at 71.24.
The rupee had settled at 71.32 against the American currency on Friday.
After the cut, the one-year MCLR comes down to 7.85 percent per annum from 7.90 percent per annum. According to SBI’s press release, this is the bank’s ninth consecutive MCLR cut during the current financial year 2019-20.
While rate cut of 25 bps was in line with consensus estimates, it was below bond market’s expectations.
The Reserve Bank of India (RBI) on Friday, cut key policy rates by 25 basis points for the fifth time this year.
Here’s how Dalal Street experts and economists reacted to the RBI policy outcome.
Bears were back in control, with eight shares in the red for every five that advanced on BSE.
In September, the rupee appreciated after FM Nirmala Sitharaman announced corporate tax cut.
Weekly IRFs would have weekly convergences to interest rates.
Participants will be keeping an eye on the WEF that could provide trigger to currencies.
The real estate sector is still saddled with 6.56 lakh unsold housing units.
MCX Gold (Dec) futures were trading 0.14 per cent lower at Rs 38,350.
The Reserve Bank of India is set to deliver a fifth straight interest rate cut Friday.
After falling for four straight sessions in a row, the BSE Sensex rebounded over 250 points ahead of RBI policy outcome in opening trade on Friday, led by gains in bank stocks. Likewise, the NSE gauge Nifty rose about 70 points in opening deals. All eyes are now set on the Reserve Bank of India’s monetary policy review, where the central bank is widely expected to cut repo rates. The 30-share Sensex recovered 255.45 points or 0.67 per cent to trade at 38,362.32. While the broader Nifty was up 72.30.30 points or 0.64 per cent at 11,386.30 in opening trade.Sensex zooms 250 pts ahead of RBI policy outcome, Nifty above 11,350; bank stocks gain
The local currency opened almost flat at 70.88 against the previous close of 70.90 per dollar.
All eyes are now set on the Reserve Bank of India’s monetary policy review on Friday, where the central bank is widely expected to cut repo rates. The Reserve Bank of India is set to lower its benchmark repurchase rate for a fifth time this year. The jury is still out on whether the central bank will go for a 25 bps or a deeper rate cut to boost the sagging economy. ET NOW poll also suggests RBI will Maintain an Accommodative stance.RBI policy review: MPC likely to cut repo rate by 25 basis points
Going into a truncated trading week, traders will keep an eye on RBI policy review.
Here’s breaking down the pre-market actions.
Following the RBI's Monetary Policy Committee (MPC) decision, the local currency witnessed heavy volatility.
The Reserve Bank of India today relaxed bank lending norms to non- banking finance companies and eased bank’s exposure limits to help the sector under stress.
The RBI MPC will announce its third bi-monthly policy of the ongoing fiscal today.
The Nifty Realty index was trading 0.74 per cent up at 264.40 around 09:55 am.
The Nifty Auto index was trading 0.05 per cent up at 6945.75 around 09:46 am.
Let us not neglect the fact that the result of every company has tax benefit. This will not be the case next year; the base effect will catch up next year, says Ajay Srivastava, Dimensions Corporate Finance Services.
Passive inflation and the central bank’s full tank of gas make the case to cut even stronger.
Here’s how Dalal Street experts and economists reacted to RBI policy decision.
With today’s rate action, we have seen a cumulative rate reduction of 110 bps, and it is imperative to see this impact percolate to the real sector.
The Nifty Bank index was trading flat at 28,009.40 around 10:02 am.
After RBI’s OMO announcement, the market is now scaling down its expectations.
Forex traders said a cautious opening in domestic equities weighed on the local unit.
The Nifty Realty index was trading 0.65 per cent down at 283.85 around 10:02 am.
The Nifty Auto index was trading 0.39 per cent down at 8267.70 around 09:44 am.
The domestic currency finally closed at 69.26 against the US dollar.
FPIs tend to be net buyers of index puts as a hedge to their portfolios.
The RBI's Monetary Policy Committee (MPC) is slated to announce its bi-monthly policy on Thursday.
YES Bank, NTPC, Vedanta, Axis Bank and Coal India were among the main leaders.
The biggest shockwave was a rise in crude oil prices as Brent crude shot up by more than $3 per barrel.
The rupee had surged by 33 paise to 68.41 against the US dollar Wednesday.
The advance-decline ratio on BSE stood at around 2:3.
The market had more negative cues to deal with than any positive.
The monetary panel voted 4-2 in favour of 25 bps rate cut.
The monetary panel voted 4-2 in favour of 25 bps rate cut.
Markets are waiting for the first bi-monthly RBIPolicy of FY20. ET NOW poll suggests that the market is expecting a 25 bps rate cut but the stance will be maintained ‘neutral’. Watch Guha Ishita caught up with Mythili Bhusnurm to know what are her projections Markets are waiting for the first bi-monthly RBI Policy of FY20
The Nifty Realty index was trading 0.66 per cent up at 274.40 around 10:09 am.
The Nifty Auto index was trading 0.39 per cent up at 8513.75 around 09:50 am.
States normally bunch up their borrowings toward the end of the financial year as they look to exhaust their limits.
RBI cut the repo -- short term lending rate at which it gives loan to banks -- third time in a row to 5.75 per cent.
Bank and financial stocks were the major index drags.
Domestic equity benchmarks BSE Sensex and NSE Nifty opened on a cautious note Thursday as investors await RBI's monetary policy decision. The 30-share index was trading 31.03 points, or 0.08 per cent, lower at 40,052.51, and the broader Nifty slipped 18.20 points, or 0.15 per cent, to 12,003.45.Sensex drops 70 points, Nifty slips below 12,000 ahead of RBI policy meet
The Nifty Bank index was trading 0.50 per cent down at 31,430.40 around 09:54 am.
On the previous occasion, the RBI had released the policy statement at 2.30 pm.
Barring IT and teck, all other sectoral indices were in the green on BSE.
The coming week is a truncated one as market will be closed on Wednesday for Id-Ul-Fitr.
Banks earn 5.15% via the repo window while four-year government bonds are yielding 6.55%.
The Indian unit on Friday had closed at 71.74 against the US dollar.
Indian bonds, the worst performer among Asian peers, may have further to fall.
The risk-reward continues to be favourable in mid and smallcaps compared to large caps.
Meetings in Asia suggest that it is becoming difficult for investors to allocate more to India.
he RBI cut repo rate by 25 basis points (100 basis points = 1%) to 6.25 per cent, for the first time after August 2017.
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