India VIX, the measure of volatility in the market, dropped further 4.8 per cent to 68.09.
Axis Bank’s CDs traded as high as 7.75 per cent before RBI announced an unscheduled bi-monthly policy last Friday. These instruments are now trading in the range of 3.90-5.90 per cent across maturities running up to nine months.
For instance, Bank of Baroda announced that it has reduced its repo-linked lending rate (BRLLR) by 75 bps with effect from March 28, 2020.
With this downward revision SBI’s external benchmark linked lending rate (EBR) stands at 7.05 percent while its repo linked lending rate (RLLR) now stands revised to 6.65 percent. EMIs on eligible home loan accounts (linked to EBR/RLLR) will get cheaper by over Rs 52 per one lakh on a 30 year loan, the bank said in a press release.
Despite the Reserve Bank of India's (RBI) massive actions to spur the economy, India's gross domestic product (GDP) is likely to contract by 4.5 per cent in the April-June 2020 quarter and will rise by only 2 per cent in 2020-21 on the coronavirus impact, according to domestic rating agency Icra.
The dollar was weighed down against its major crosses ahead of the US Senate vote on $2 trillion stimulus package.
As far as the moratorium is concerned, we want to work with individual borrowers, says MD &CEO, Axis Bank
Continued fund outflow could disturb the overall sentiment in the market as it is not only restricted to the equity segment but also the debt segment.
Finance Minister Nirmala Sitharaman said,"appreciate RBI Governor Shaktikanta Das' reassuring words on financial stability. The 3-month moratorium on payments of term loan installments (EMI) and interest on working capital give much-desired relief. The slashed interest rate needs quick transmission."
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.
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 .
The rollover in Nifty futures rollovers on a provisional basis to the April series was 62%.
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.
Effective from March 10, 2020, the one-year is 7.75 per cent down from 7.85 per cent earlier. Similarly, three-month MCLR now stands at7.50 per cent, down from 7.65 per cent by 15 bps.
BofA has cut India's June quarter growth forecast by 90 bps to 3.1% and full-year target to 4.1% for FY21.
The dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.07 per cent to 97.79.
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.
SBI is set to pick up 49 per cent stake in crisis-hit Yes Bank under RBI's reconstruction plan.
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 repo rate now stands at 5.15 per cent, the lowest since March 2010.
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.
At the interbank foreign exchange market, the local currency opened at 71.25.
The benchmark one-year tenor MCLR will now be 8.25 per cent as compared to the existing 8.30 per cent.
Total income, however, fell to Rs 536.53 crore in the third quarter of 2019-20.
The RBI Governor said inflation was broadly in line with their expectations.
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
From a long-term perspective, the Budget has a lot of ingredients to drive economic growth.
The pro-rata allotment set by the RBI was at 12.86 per cent.
Going into a truncated trading week, traders will keep an eye on RBI policy review.
Smart recovery by Asian markets and hopes of stimulus from central banks drove market higher.
Foreigners bought Rs 136.7 billion ($1.9 billion) of the debt in the first two weeks of Feb.
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.
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.
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.
The excess supply of funds has pulled rates on 4-year & 3-year sovereign bonds down 28-37 bps.
Passive inflation and the central bank’s full tank of gas make the case to cut even stronger.
Analysts expect the flows into MFs to gather further momentum in the coming months.
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.
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.
Mutual fund inflows will gather further momentum in the coming months, Union Asset Management Company CEO G Pradeepkumar said.
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.
"USDINR pair is expected to quote in the range of 71.10 and 71.50,” said Motilal Oswal Financial Services.
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.
Weekly IRFs would have weekly convergences to interest rates.
Patra said indicators were not offering evidence yet that the downturn was bottoming out.
When the global GDP is already struggling to reach 3% target, shaving off 2% does have a meaningful impact across the world, says the Group President and Head of Fixed Income at UTI AMC
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.
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.
States normally bunch up their borrowings toward the end of the financial year as they look to exhaust their limits.
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 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.
On the previous occasion, the RBI had released the policy statement at 2.30 pm.
Participants will be keeping an eye on the WEF that could provide trigger to currencies.
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.
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