- What to expect from debt mutual funds after budget and RBI policy?This time the budget has estimated a higher deficit, if the government underspends the deficit might surprise on the positive side.
- Focus on growth, but bond market unimpressed: What experts say on RBI policyIn the absence of explicit guidance on open market operations to support bond yields, the RBI may need to continue to fight yield volatility amid an expanded bond issuance programme, Barclays said in a note.
- Top debt mutual fund managers decode RBI policyMarket players were disappointed as they expected specific measures like increase in HTM limits, OMO calendar.
- Monetary Policy highlights: RBI restores CRR, allows online access to government securities marketThe Reserve Bank's Monetary Policy Committee (MPC) voted unanimously to leave the repo rate unchanged at 4 per cent, Governor Shaktikanta Das said while announcing the decisions taken by the panel. Watch.Monetary Policy highlights: RBI restores CRR, allows online access to government securities market
- EMIs to remain low; buy G-Secs directly: What RBI announcements mean for youThe rates have been kept at a record low, and some of the current lending schemes have been extended to fuel growth.
- The week that was: Financial, infra stocks rule the roost as earnings, RBI policy contribute to rallyA good earnings performance by some companies and the RBI's policy tweaks also contributed to the rally.
- View: Does RBI policy signal a move towards a new equilibrium for yields?In our view, an accommodative stance does not imply the same level of systemic liquidity surplus and bond yields going forward.
- RBI Policy: MPC keeps repo rate unchanged, pegs FY22 GDP growth at 10.5%The central bank retained the repo rate at their record low of 4 per cent and the reverse repo rate at 3.35 per cent.
- Budget 2021, RBI policy among key factors that may move market this weekThe Union Budget and its announcement will remain the biggest focus point for the market as investors hope that the government will deliver a pro-cyclical stimulus to further strengthen the ongoing economic recovery.
- RBI may raise rates only in FY23: BofA Securities"We expect the RBI MPC to remain on hold in FY'22, with oil prices rising, and hike rates by 100bps in FY'23" said Indranil Sengupta, chief India economist, BofA Securities.
- Bank Nifty may rise up to 4% this week on RBI policy meetThe 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.
- After solid Budget rally, wait for some adverse action to deploy fresh moneyMarket participants should focus solely on quality names as the indices have already run up quite a bit. One should remain invested in quality stocks and wait for a decent knee-jerk reaction to add fresh money.
- We need a buyer of last resort for capital market: Nilesh ShahWe need a buyer of last resort in the capital market for participation of NBFCs in TLTRO.
- RBI may bring uniform regulation for all microfinance lendersWhile RBI did not specify anything more, captains of the microfinance sectors expect the activity-based regulation to replace the current framework of institution-based regulation to put all microfinance lenders on the same platform.
- Set up 24x7 helpline for digital payments by Sept, RBI tells operatorsAs per the RBI statement, the major payment operators are required to set-up the mechanism by September, 2021. Going forward, the facility of registering and resolving the customer complaints through the helpline shall be considered, the statement added.
- NBFCs to get funds under on tap TLTRO scheme for incremental lending: RBIIn October last year, the RBI had announced on tap targeted long term repo operations (TLTRO) scheme for banks. It had said to conduct on tap TLTRO with tenors of up to three years for a total amount of up to Rs one lakh crore at a floating rate linked to the policy repo rate. The scheme is available till March 31, 2021.
- RBI holds policy rates; what should be in your debt mutual fund portfolio?The Reserve Bank of India, in its latest bi-monthly monetary meet, decided to keep the repo rate unchanged at 4%.
- RBI announces major structural move, gives retail investors direct online access to securities marketThe new measure will facilitate smooth completion of the government borrowing programme, RBI governor Shaktikanta Das said. With this move, India joins a select club of a few countries that have this facility.
- RBI Monetary Policy: India’s central bank keeps repo rate unchanged at 4%, maintains 'accommodative' stanceThe Reserve Bank of India kept repo rate unchanged at 4% while maintaining its stance 'accommodative', said RBI Governor Shaktikanta Das on Friday (February 5). RBI's policy decision was broadly in-line with the Street estimates as economists were expecting the central bank to maintain status quo on key policy rates. The reverse repo, the rate at which RBI borrows money from banks, was also kept unchanged at 3.35%. RBI had last reduced policy rates on May 22 last year.RBI Monetary Policy: India’s central bank keeps repo rate unchanged at 4%, maintains 'accommodative' stance
- RBI’s words will have to speak louder than action as market looks for answersWhen the rate-setting panel sets to release its statement on Friday, it will have to choose its words with even more care than before, as they may end up deciding the course the bond market and equity market will take going ahead.
- 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.
- RBI Monetary Policy: 10 key takeaways from Shaktikanta Das's speechRBI 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.
- Sensex gains 150 points ahead of RBI policy review; Nifty tops 13,200OPENING 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 sayWhat 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 weekThis 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 ShahWhile 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 expertsFriday's monetary policy was as aggressively accommodative as possible without cutting the policy rate, said Abheek Barua, Chief Economist, HDFC Bank.
- 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?
- RBI keeps repo rate unchanged at 4%, maintains accommodative stanceThe 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.
- RBI faced with managing an impossible trinityRBI 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 monthsNarrowing 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 systemMPC’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 decisionAs 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 standardsIn 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, ASSOCHAMMr 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 DasThe 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 policyThe 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 halfThe 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 stanceRBI 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 FridayNagaraj 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."
- Muthoot Finance counter sees huge bearish activity post RBI policyThe 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 outcomeThe 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 outcomeThe Nifty Realty index was trading 1.51 per cent up at 205.45.
- Share market update: Bank stocks up ahead of RBI's policy outcomeThe Nifty Bank index was trading 0.36 per cent up at 21587.8.
- Share market update: Auto stocks mixed ahead of RBI's policy outcomeThe Nifty Auto index was trading 0.51 per cent down at 7450.8.
- Trade Setup: RBI policy & weekly options expiry to keep Nifty shakyNifty 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.
- IPOs, RBI policy, auto sales, FII flows among key factors that may guide D-St this truncated weekGoing by the buzz on Dalal Street, here are the top factors that are likely to guide the stock market this week.
- 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.
- Next RBI policy meeting on June 3-5The MPC typically meets bi-monthly and comprises of six members.
- RBI hit all the right chords by addressing both immediate and long-term needsThe 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 expectedThe 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 measuresThe 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 surgeBanks 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 yieldsFinancial 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 youA 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 youA 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 statementFollowing 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 unchangedThe 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.
- Rates steady, gold LTV ratio raised, MSME debt restructuring extended: Analysing the key RBI policy announcementsThe 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 11,150Domestic 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
- View: RBI’s response during Covid proves its inflation targeting has worked wellBut 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 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's newly-constituted MPC to meet for 3-days beginning Wednesday; Decision on October 9On 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 9RBI had postponed its MPC meeting due to delays in naming new members to the committee.
- RBI policy, Q1 earnings, auto sales, dollar among key factors that may guide Dalal Street this weekHere are some of the key factors expected to move the market in the week ahead.
- Monetary policy delay adds to Indian bankers’ long list of problemsThe 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 recoveryThe 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.
- RBI postpones MPC meeting as external member posts lie vacantIn 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 soonThe central bank, however, did not provide any reason for such rescheduling.
- RBI likely to maintain status quo in upcoming policy reviewRBI 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."
- Top debt fund managers react to RBI policyRBI 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.
- Sensex falls 477 points from day's high on profit booking, ends 25 points lower; all eyes on RBI policy outcomeThe 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.
- 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.
- Brokerages still see scope for one more cut in the repo rateSome brokerages see scope for one more rate cut but said the central bank’s focus is likely to be on financial stability measures.
- Rupee ends flat ahead of RBI policy outcomeThe dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.07 per cent to 97.79.
- No extension of loan moratorium, but RBI introduces debt resolution plan for eligible borrowersAnalysts 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 meetRBI 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 IyerIt 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 11,150Street 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 analystsThe 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 guideDas 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 Policy Push: Bond yields dip 25 bps on shorter maturitiesThe 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 policyFour-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 outcomeThe Nifty Realty index was trading 0.12 per cent down at 326.
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