The Economic Times
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| 19 January, 2021, 10:51 PM IST | E-Paper

    Bank Nifty may rise up to 4% this week on RBI policy meet

    The expectation is for the Bank Nifty to rise a maximum of 4 per cent from the spot closing of 29,818 on Tuesday to 31,000 by or after December 4. All options expire on December 10.

    RBI Monetary Policy: 10 key takeaways from Shaktikanta Das's speech

    RBI believes rural demand, which is already a silver lining in times of crisis, is expected to strengthen further, while urban demand is also gaining momentum.

    RBI policy: What is in it for mutual fund investors?

    The Reserve Bank of India may have held key rates in its bi-monthly policy review, but a slew of liquidity measures announced in the policy more than made up for the status-quo in rates.

    Sensex gains 150 points ahead of RBI policy review; Nifty tops 13,200

    OPENING BELL: Sensex gains 150 points ahead of RBI policy review; Nifty tops 13,200Sensex gains 150 points ahead of RBI policy review; Nifty tops 13,200

    What can you expect from RBI policy? Here's what debt fund managers say

    What will RBI do this week? Hold rates? Or will it cut rates? These are the questions asked by bond market investors as the Monetary Policy Committee (MPC) starts its meeting tomorrow. The MPC meeting scheduled between December 2-4.

    RBI policy review, Burger King IPO & auto sales among factors that will sway market this week

    This truncated week will see the release of auto sales data and PMI readings, the kick start of Burger King IPO, RBI's policy review, OPEC's virtual meet and investors' reaction to India slipping into recession.

    Bond market rally to continue after RBI policy: Devang Shah

    While RBI MPC maintained status quo on rates as expected, the central bank clearly beat broader expectations with a slew of measures to boost liquidity, said Devang Shah, deputy head - fixed income at Axis Mutual Fund. Shah drew comfort from RBI's focus on growth revival. He believes the room for further rate cut was limited, and the central bank was at the fag end of the rate-cutting cycle. Watch now.Bond market rally to continue after RBI policy: Devang Shah

    RBI policy overall positive, growth-oriented, say experts

    Friday's monetary policy was as aggressively accommodative as possible without cutting the policy rate, said Abheek Barua, Chief Economist, HDFC Bank.

    RBI faced with managing an impossible trinity

    RBI is faced with a herculean task of managing the impossible trinity of inundation of inflows, managing exchange rates in line with macro fundamentals and the ongoing high inflation

    Economic recovery will have to precede credit recovery

    "The last two quarters have been extremely tough. The rebound will accompany credit growth," says Challa Sreenivasulu Setty, MD, SBI.

    It’s okay for RBI to let go of inflation for three-six months

    Narrowing RBI to just focusing on inflation will be not the right step, Nilesh Shah said.

    Space for RBI rate cut vanishes; but ample liquidity in the system

    MPC’s concern that price pressures are spreading, and the stated need for monitoring threats to price stability to anchor macroeconomic and financial stability, suggest that an extended pause is likely, despite its desire to nurture the nascent economic revival.

    A mix of AA, AAA strategies to benefit investors, says Axis Mutual Fund

    “Short term credits (up to 2 year) offer significant opportunities for active strategies at this juncture as they would mature before the probable rate hike cycle commences,” said the fund house in a note to investors.

    Decoding today's policy status quo: The factors at play behind RBI's rate decision

    As the excess liquidity seeps through the financial system to the economy, the central bank is raising the game on financial stability by barring dividend payouts by banks for last fiscal. The Monetary Policy Committee voted unanimously to keep rates unchanged and maintain the accommodative stance.

    Industry, experts say RBI's status quo on policy rates to aid economic recovery

    "There has been a substantial upgrade to the overall growth forecast for the second half of the current fiscal. This is encouraging but given the stress the economy had faced on account of COVID-19, we anticipate that policy support, both from the RBI and the government, will be required well into the next year," Ficci President Sangita Reddy said.

    Governor Shaktikanta Das wants banks to improve corporate governance and risk standards

    In March this year the regulator imposed a moratorium on Yes Bank and quickly stitched a reconstruction plan with SBI and nine other domestic entities investing in the lender. Likewise, last month the RBI directed a forced merger between troubled Lakshmi Vilas Bank and DBS (India) Bank, wiping out holdings of all equity and tier 2 bond holders.

    RBI rate decision on expected lines: Niranjan Hiranandani, ASSOCHAM

    Mr Hiranandan stated that the Reserve Bank of India needs to have a hawkish stance while looking at the inflation figures and try to taper it further in order to mitigate the supply-side pressure.

    RBI to come out with digital payment security control directions: Shaktikanta Das

    The announcement comes a day after the RBI temporarily barred largest private sector lender HDFC Bank from selling new credit cards or launching new digital banking initiatives, taking a serious view of service outages at the systemically important bank over the last two years.

    ET View: Negative rates as conscious policy

    The RBI’s policies on maintaining high liquidity to fuel recovery, keeping a Targeted Long Term Repo window open is most sensible. It is unlikely to be used much, though, considering the oodles of liquidity being created by the RBI’s attempt to keep the exchange rate reasonably stable, even as foreign capital floods in, as confidence returns to mature markets.

    RBI says economy to contract 7.5% for FY21, predicts growth to turn positive in second half

    The second half of the fiscal year is expected to show positive growth, Shaktikanta Das said.

    Money Policy: RBI keeps repo rate unchanged at 4%, maintains accommodative stance

    RBI refrained from cutting policy rates in previous monetary policy meetings as well, citing discomfort over elevated inflation.

    Ahead of Market: 12 things that will decide stock action on Friday

    Nagaraj Shetti, Technical Research Analyst, HDFC Securities said, “The market was seen struggling at the new highs, which could open further consolidation or weakness from the highs. Immediate support needs to be watched at 13,000 levels."

    RBI keeps repo rate unchanged at 4%, maintains accommodative stance

    The latest MPC decision came as retail inflation continued to remain at the upper end of RBI’s tolerance range. It has stayed stubbornly above 6 per cent, at 6.69 per cent in August and 6.73 per cent in July.

    What are market expectations from RBI policy meet?

    What is the street expecting from the RBI policy meet? The 46% of the street is expecting the Reserve Bank of India to cut the repo rate by 25 bps, but 54% is expecting to maintain the status quo as RBI has front-loaded repo rate cut.What are market expectations from RBI policy meet?

    What is a long duration debt fund?

    Long duration funds or long-term bond funds are debt funds that invest in long-term fixed income instruments. The investment mandate makes them suitable only for long-term investments.

    IPOs, RBI policy, auto sales, FII flows among key factors that may guide D-St this truncated week

    Going by the buzz on Dalal Street, here are the top factors that are likely to guide the stock market this week.

    Muthoot Finance counter sees huge bearish activity post RBI policy

    The open interest (OI) of the front month contract jumped 29% as its price tumbled almost 9% to Rs 1215.95 from the intraday high of 1332.5.

    Rupee opens 13 paise up ahead of RBI policy outcome

    The expectation of an announcement of the stimulus package from the US kept the dollar under pressure.

    Share market update: Realty stocks rise ahead of RBI's policy outcome

    The Nifty Realty index was trading 1.51 per cent up at 205.45.

    Share market update: Bank stocks up ahead of RBI's policy outcome

    The Nifty Bank index was trading 0.36 per cent up at 21587.8.

    Share market update: Auto stocks mixed ahead of RBI's policy outcome

    The Nifty Auto index was trading 0.51 per cent down at 7450.8.

    Trade Setup: RBI policy & weekly options expiry to keep Nifty shaky

    Nifty is likely to see a tentative start and the 11,065 and 11,200 levels are likely to act as key resistance points.

    RBI policy: What is in store for debt mutual fund investors?

    The monetary policy committee (the MPC) will meet in the first week of August 2020 to deliberate and are likely to have their task cut out with the economy staring at a contraction and the need to manage inflation.

    RBI hit all the right chords by addressing both immediate and long-term needs

    The overall policy announcements should be viewed in the context of focus on growth as the central bank knows very well that the government does not have too much headroom on the fiscal front.

    Status quo! Yet, RBI delivered more than a rate cut, and how!

    Though the rates were kept unchanged, RBI Governor announced various other measures to improve credit growth in the economy, and to deal with the risk aversion among banks.

    RBI has done more than the market had expected

    The Governor is very focussed on making sure that borrowing programmes happen effectively, sovereign rates remain low and the transmission of that low sovereign rate happens to the real economy, says Jayesh Mehta.

    RBI pushes banks to open purse strings through series of measures

    The RBI which stood pat with the key policy rate at 4% said its focus of liquidity measures will now include revival of activity in specific sectors that have both backward and forward linkages, and multiplier effects on growth.

    'RBI governor is hitting every ball outside of the stadium'

    I am a fund manager and by nature I have to be an optimist and second, the data also suggest that it is time to be optimististic, says Nilesh Shah

    Homebuyers get early Diwali gift; housing finance stocks surge

    Banks and non-banking financial institutions have been reluctant to provide loans to the real estate sector citing risks amidst the pandemic, while buyers have also remained financially stressed.

    'Surprised RBI thinks GDP growth can turn positive in Q4'

    There is still space for 25-50 bps policy easing in the rest of FY21, says Tanvee Gupta Jain.

    RBI Guv unveils his own version of Quantitative Easing to tame yields

    Financial markets cheered the policy pronouncements with the Bank Nifty climbing 2 percent by noon. The rupee climbed to a monthly high against the US dollar. Yields on 10 year bonds fell to 5.9%.

    Easier housing loans, promise of liquidity - What RBI announcements mean for you

    A relatively higher inflation is also keeping RBI from further lowering the policy rates. So, if inflation cools off, we can see some more action from the central bank to support the economy.

    Easier housing loans, promise of liquidity - What RBI announcements mean for you

    A relatively higher inflation is also keeping RBI from further lowering the policy rates. So, if inflation cools off, we can see some more action from the central bank to support the economy.

    How will RBI steps affect market? Analysts broke it down like this

    "We see the possibility of the further scope of 25-50 basis points cut in repo policy rates," said Amar Ambani, YES Securities

    Highlights of RBI's monetary policy statement

    Following are the highlights of RBI Governor Shaktikanta Das' statement and resolution of the Monetary Policy Committee (MPC).

    Bank, auto, realty stocks mixed after RBI keeps repo rate unchanged

    ​The Nifty Realty index was trading 0.91 per cent down at 217, while the Nifty Auto index was trading 0.14 per cent up at 8195.25 around 10:08AM.

    View: RBI’s response during Covid proves its inflation targeting has worked well

    But the key point is that the monetary policy is working, and GoI and RBI need to allow it to continue. What do we mean by ‘functioning quite well’? First, RBI responds to both changes in inflation and changes in the output gap. It balances the two considerations. Thus, it is best characterised as a ‘flexible inflation targeter’, not an ‘inflation nutter’.

    Has near-failure in inflation targetting altered the equation for RBI’s money policy?

    While MPC’s hands seem to be tied at present given the near-failure in meeting its inflation target, one believes RBI is not done with rate cuts.

    RBI's newly-constituted MPC to meet for 3-days beginning Wednesday; Decision on October 9

    On September 28, the RBI had postponed the meeting of the Monetary Policy Committee (MPC), which must have a quorum of four, as the appointment of independent members was delayed.

    RBI monetary policy announcement on October 9

    RBI had postponed its MPC meeting due to delays in naming new members to the committee.

    Next RBI policy meeting on June 3-5

    The MPC typically meets bi-monthly and comprises of six members.

    Monetary policy delay adds to Indian bankers’ long list of problems

    The Reserve Bank of India’s decision to reschedule this week’s interest-rate meeting makes it difficult for lenders to price loans and deposits because they usually track the monetary policy’s outlook for liquidity and interest rates.

    RBI's 'reckless' delay on policy panel holds back recovery

    The Reserve Bank of India deferred its three-day interest-rate meeting due to start Tuesday, without giving any reasons or a new date for its policy decision.

    Rates steady, gold LTV ratio raised, MSME debt restructuring extended: Analysing the key RBI policy announcements

    The Reserve Bank of India on Thursday kept interest rates on hold to contain elevated inflation, even as it allowed banks to restructure some corporate and individual loans as part of efforts to revive the economy that faces its first contraction in more than four decades. There will be separate windows available for the restructuring of loans of small and mid-size enterprises who have been impacted by the COVID-19 pandemic. The central bank also raised the limit of loans that can be availed against gold ornaments and jewellery. Tune in as ET's consulting editor TK Arun shares his views on the key highlights of the RBI policy statement. (Text: PTI)Rates steady, gold LTV ratio raised, MSME debt restructuring extended: Analysing the key RBI policy announcements

    Sensex gains over 150 pts ahead of RBI policy outcome; Nifty tops 11,150

    Domestic equity benchmark Sensex jumped over 150 points in opening session on Thursday ahead of the Reserve Bank of India's monetary policy outcome. The BSE Sensex was trading 183 points or 0.49 per cent higher at 37,846.33; while the NSE Nifty was up 52.70 points or 0.47 per cent at 11,154.35.Sensex gains over 150 pts ahead of RBI policy outcome; Nifty tops 11,150

    RBI postpones MPC meeting as external member posts lie vacant

    In an unprecedented move, the RBI today announced that the monetary policy that was scheduled to take place from Sep 29- Oct 1 will be rescheduled. The move comes in light of the pending announcements by the government for the selection of the 3 external members. The rate setting panel has 6 members including the RBI Governor, Deputy Governor and Executive Director along with three external representatives. The 4 year tenure of external members Chetan Ghate, Pami Dua and Ravindra Dholakia recently ended. Economic Affairs Secretary Tarun Bajaj led panel was tasked with looking for new external members.RBI postpones MPC meeting as external member posts lie vacant

    RBI says MPC meet rescheduled; new dates to be announced soon

    The central bank, however, did not provide any reason for such rescheduling.

    RBI likely to maintain status quo in upcoming policy review

    RBI governor Shaktikanta Das had earlier said although there was headroom for further monetary policy action, it was important to keep "our arsenal dry and use it judiciously."

    RBI policy, Q1 earnings, auto sales, dollar among key factors that may guide Dalal Street this week

    Here are some of the key factors expected to move the market in the week ahead.

    RBI policy post-mortem: Liquidity is okay; what about risk aversion?

    This is how economists and market analsysts reacted to RBI's move to slash repo rates.

    RBI has not exhausted ammunition to fight situation due to pandemic: Shaktikanta Das

    "We have not exhausted our policy options, whether it relates to rate cuts or any other aspects of central banking. We have not exhausted our instruments or ammunition," he said.

    Sensex falls 477 points from day's high on profit booking, ends 25 points lower; all eyes on RBI policy outcome

    The continued rapid surge in coronavirus infections also bothered investors. For the seventh day in a row India registered more than 50,000 new Covid-19 cases, taking the total tally past the 19-lakh mark.

    Top debt fund managers react to RBI policy

    RBI kept the policy rates unchanged in the bi-monthly MPC meet today. Debt mutual fund managers say the move is in line with the market expectations.

    Brokerages still see scope for one more cut in the repo rate

    Some brokerages see scope for one more rate cut but said the central bank’s focus is likely to be on financial stability measures.

    No extension of loan moratorium, but RBI introduces debt resolution plan for eligible borrowers

    Analysts said the step was in the right direction and would cover roughly 50-55 per cent of the loans in the banking system.

    More freedom to banks, further rate cut not ruled out: 10 key takeaways from policy meet

    RBI gave more freedom to banks to deal with loans while keeping mum on moratorium. The monetary policy committee (MPC) said India’s GDP growth is likely to slip in the red during the fiscal year.

    Monetary Policy: RBI's loan restructuring move to provide breather to real estate

    “While the sector was looking at a further revision in the policy rate, to boost demand, we appreciate the accommodative stance by the RBI, in the wake of a high rate of inflation which may have necessitated keeping policy rates unchanged,” said Shishir Baijal, Chairman and Managing Director, Knight Frank India.

    RBI holds rates; What should debt mutual fund investors do?

    The Reserve Bank of India held its policy rate in its monetary policy review held today in line with market expectations.

    Expect a small calibrated cut from RBI rather than a pause: Siddhartha Sanyal

    ‘Even if the headline print is slightly higher than the RBI’s comfort in the latest print, the pressure for the RBI to deliver more rate cuts is quite strong.’

    We could get a sneak peek of one-time restructuring for banks: Lakshmi Iyer

    It is going to be a tightrope walk. So there is no one answer to this.

    Sensex rises 200 points ahead of RBI meet outcome; Nifty above 11,150

    Street analysts are expecting further rate cuts from the Shaktikanta Das-led panel

    Moratorium, growth-inflation puzzle, one-time loan recast: RBI's 3 big dilemmas today

    "Rate cuts so far have had little impact on demand stimulation or growth," said Shanti Ekambaram, Group President for Consumer Banking at Kotak Mahindra Bank.

    RBI move judicious, forget rate cut at least till Oct, say analysts

    The central bank has already reduced the repo rate by a total of 115 basis points since February, on top of the 135 basis points in an easing cycle last year, from 6.50 per cent.

    India rate cut is too close to call on CPI risks: Decision guide

    ​​​​Das has already led the Monetary Policy Committee in cutting interest rates by 115 basis points this year, taking the repurchase rate down to 4%, the lowest since it was introduced in 2000.

    Another rate cut from RBI, or could it get more creative?

    One of the key reasons why this is likely to get debated is the recent CPI data (consumer inflation).

    RBI likely to pause on rate cuts on Aug 6 due to spike in inflation

    The general expectation is that the rise in inflation has been due to supply shocks while demand pressures will remain leading to lower inflation by Q4 of FY21.

    RBI likely to leave repo rate unchanged in August policy meet: SBI Report

    "We believe an August rate cut is unlikely. We believe that the MPC could now well debate what further unconventional policy measures could be resorted to in the current circumstances to ensure financial stability is continued to be addressed," an SBI research report- Ecowrap said.

    What RBI policy surprise means to you

    The Reserve Bank of India (RBI) Governor Shaktikanta Das-headed monetary policy committee (MPC) on Thursday maintained status quo on policy rates in its 5th bi-monthly monetary policy review of the financial year. This came after five consecutive cuts. The short-term lending rate, or repo rate, was unchanged at 5.15 per cent.

    Rupee ends flat ahead of RBI policy outcome

    The dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.07 per cent to 97.79.

    RBI Policy Push: Bond yields dip 25 bps on shorter maturities

    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.

    Short-term yield drops 17 bps after RBI policy

    Four-year sovereign bonds are now yielding 6.07 percent dropping about 14 basis points since Wednesday.

    RBI policy review: MPC keeps repo rate unchanged at 5.15%

    With economy showing visible signs of green shoots, RBI decided to focus on taming inflation.

    Stock market update: Realty stocks mixed ahead of RBI's policy outcome

    The Nifty Realty index was trading 0.12 per cent down at 326.

    Share market update: Auto stocks up ahead of RBI's policy outcome

    The Nifty Auto index was trading 0.55 per cent up at 8176.05 .

    RBI keeps repo rate unchanged at 5.15% amid accelerating inflation

    The six-member monetary policy committee (MPC) on Thursday decided to keep its short-term lending rate -- repo rate rate -- unchanged at 5.15 per cent in the sixth bimonthly policy review of the ongoing financial year. The central bank's Monetary Policy Committee (MPC) decided to leave the key repo rate unchanged at 5.15% and the reverse repo rate at 4.9%.RBI keeps repo rate unchanged at 5.15% amid accelerating inflation

    RBI to infuse Rs 3.74 lakh cr liquidity into financial system

    Reserve Bank Governor Shaktikanta Das on Friday said about Rs 3.74 lakh crore liquidity on aggregate basis will be infused into the financial system to deal with the COVID-19 pandemic.RBI to infuse Rs 3.74 lakh cr liquidity into financial system

    Sensex vaults 1,000 points on hopes of RBI policy measures, Nifty nears 9,000

    India VIX, the measure of volatility in the market, dropped further 4.8 per cent to 68.09.

    Debt mutual fund managers react to RBI policy

    The repo rate now stands at 5.15 per cent, the lowest since March 2010.

    ET Explains: What's making the pass-through of RBI's policy decisions sticky

    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.

    RBI policy surprise: Should you change your mutual fund strategy?

    RBI today surprised everyone by keeping the policy rates unchanged, contrary to expectations of 15-25 bps cut.

    Stock market update: Realty stocks rise ahead of RBI's policy outcome

    The Nifty Realty index was trading 0.47 per cent up at 286.70.

    Share market update: Auto stocks up ahead of RBI's policy outcome

    The Nifty Auto index was trading 0.28 per cent up at 8019.2 .

    RBI in pause mode, but Das keeps rate cut hopes alive: 10 key takeaways

    The monetary policy committee recognised that there is policy space available for future action.

    3 reasons why the wait for more RBI rate cuts may not end today

    Chetan Ghate noted that the counter-cyclical money policy had been ineffective.

    RBI keeps repo rate unchanged at 5.15%, stance remains accommodative

    The central bank slashed FY20 real GDP growth projection to 5% from 6.1%.

    RBI & govt going for a calibrated approach as Covid situation extremely uncertain: Sanjeev Sanyal

    ‘We are more than willing to do what is necessary but it needs to be targeted in the right place’

    Extension of loan moratorium won’t solve banks’ problem: Ajay Srivastava

    ‘RBI has ignored the restructuring problem and moved ahead with minor tweaking of just three months’

    RBI should allow one-time loan restructuring for worst-hit sectors: Keki Mistry

    ‘Hospitality, airline, hotels and real estate are sectors where a lot of jobs get created’

    Reduced rates and govt credit guarantee to persuade more banks to lend: Mythili Bhusnurmath

    ‘Government will ensure that public sector banks at least fall in line’

    Zero growth, credit freeze, price rise, demand squeeze… RBI report shows economy in a tight spot

    The silver lining, if any, comes from the agriculture sector, says RBI.

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