In addition to the negative sentiment as a consequence of changes announced in the Union Budget 2023-24 concerning tax treatment for debt repayment distribution, concerns about hiring slowdown and its leasing impact, as well as higher interest rates, could blight the sector in the near term.
'The cost of financing the fiscal deficit will decrease, as new passive investors join in.'
The Reserve Bank on Friday took steps towards normalisation of liquidity management to pre-pandemic levels, with the introduction of the standing deposit facility (SDF) as the basic tool to absorb excess liquidity, and narrowing the liquidity adjustment facility (LAF) to 0.50 per cent from the 0.90 per cent. Governor Shaktikanta Das said the SDF will be at 3.75 per cent, 0.25 per cent below the repo rate and 0.50 per cent lower than the marginal standing facility (MSF) which helps the banks with funds when required. The SDF has its origins in a 2018 amendment to the RBI Act and is an additional tool for absorbing liquidity without any collateral.
Voicing his deep concern, the UN chief said that the "hospitals in the south of Gaza are already at capacity and will not be able to accept thousands of new patients from the north."
Some of the country's largest listed real estate developers - DLF, Prestige Estates, and Puravankara - are foraying into the Rs 50,000-crore residential property market of Mumbai, where home prices are among the highest in the world. All of them are set to launch residential projects in the financial capital of the country, where the market is dominated by players such as Runwal, Lodha, and Oberoi Realty, among others. Leading the race is Prestige, which has lined up 6 million square feet (msf) of new launches in the city across Mulund and Byculla in the third quarter of this financial year (2021-22).
The Reserve Bank of India (RBI) on Wednesday raised the benchmark lending rate by 35 basis points to 6.25 per cent in a bid to tame inflation, which has remained above its tolerance level for the past 11 months. With the latest hike, the repo rate or the short-term lending rate at which banks borrow from the central bank now has crossed 6 per cent. This is the fifth consecutive rate hike after a 40 basis points increase in May and 50 basis points hike each in June, August and September.
The real estate sector might have been caught off guard by the second wave of the Covid-19 pandemic, but large listed developers like Godrej Properties and Prestige Estates Projects soldier on undeterred. They aim to have sales bookings of Rs 10,000 crore in the next few years.
Liquidity in the banking system has slipped into a deficit for the first time in three weeks, prompting banks to borrow the largest quantum of funds from the Reserve Bank of India (RBI) in around a month and a half. The key catalyst for the sudden tightening in liquidity was due to outflows on account of advance tax payments, which occur towards the end of a quarter. Analysts also cited other factors such as a currency leakage and possible interventions by the RBI in the foreign exchange market, which contributed to the tighter liquidity conditions.
The incident occurred during the inauguration of a 'madrassa' building in the district, where students were felicitated recently.
Reserve Bank of India (RBI) on Friday kept the benchmark interest rate unchanged at 4 per cent and decided to continue with its accommodative stance despite rising inflation. This is the 11th time in a row that the Monetary Policy Committee (MPC) headed by RBI Governor Shaktikanta Das has maintained the status quo. RBI had last revised its policy repo rate or the short-term lending rate on May 22, 2020 in an off-policy cycle to perk up demand by cutting the interest rate to a historic low.
A court in Wayanad on Wednesday directed the police to register a case against Bharatiya Janata Party Kerala chief K Surendran on charges of bribing tribal leader and Janathipathya Rashtreeya Party (JRP) president C K Janu to contest as an NDA candidate in the Mananathavady Assembly constituency in the April 6 elections.
Analysts expect RBI to restore 100-bp corridor in Tuesday's policy review.
The Reserve Bank of India (RBI) on Monday realigned the bank rate to marginal standing facility (MSF) rate in one-time technical adjustment. The bank rate now stands at 9.5 per cent as against six per cent earlier.
Western drugmakers, including Pfizer Inc, Novartis AG, Roche Holding AG and Sanofi SA, covet a bigger share of the fast-growing Indian drugs market.
Governor Raghuram Rajan's move to cut the MSF rate, at which banks borrow if they exceed their repo borrowing limits, by 0.50 per cent to 9 per cent should not be construed as a reversal in his policy stance and is more of a normalising measure, Citi said in a note.
June quarter showed revival over previous one, says study; Mumbai-Pune and Bangalore lead the way
According to the research arm of the country's largest lender State Bank of India, with stability in the currency, the RBI Governor is likely to lower the marginal standing facility rate, at which the RBI lends to the banks, once the lenders exhaust their overnight repo borrowing limits.
A fresh mall supply for H1 2012 stood at 2.27 million square foot (msf).
After a month-long halt due to the violent clashes in Jammu and Kashmir, Medecins Sans Frontieres, an international medical humanitarian organisation, has resumed its activities in the Valley.
The RBI has hiked repo or short-term lending rate up by 0.25 pc to 7.75 pc.
In its scheme of things, tackling inflation now comes ahead of ensuring growth in the world's sixth largest economy, points out Tamal Bandyopadhyay.
Bank Nifty has recovered nearly 300 points at 10,968 from intra-day low of 10,669 touched in early morning deals.
RBI has taken a balanced approach in the credit policy considering various developments across the globe and their near term impact.
The RBI has set up a panel to review ATM charges, and fees levied by banks.
In September, the headline inflation accelerated to a seven-month high of 6.46 per cent, while the retail inflation quickened to 9.84 per cent.
Financial services firm AnandRathi analysed the key points of the policy soon after it was announced.
With the stock markets scaling new heights, Finance Minister P Chidambaram on Friday sounded a note of caution and asked investors to guard against excessive exuberance.
IT majors and Maruti Suzuki down 8% were the top losers among Sensex-30.
Rollback of July tightening measures indicates comfort on currency but a repo rate hike is around the corner.
He doesn't expect banks to raise interest rates, as they'd not reduced these after the policy rate cuts in May and March.
Rajan, who will complete a month as the governor of Reserve Bank of India on Friday has already succeeded in restoring calm in the foreign exchange market.
The Reserve Bank has decided to keep the cash reserve ratio (CRR) of scheduled banks unchanged at 4.0 per cent of their net demand and time liabilities and keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 7.25 per cent.
An action on the rate front is unlikely to figure in Rajan's plan for the moment.
The Reserve bank of India has kept the repo rate and reverse repo rates unchanged in its mid-quarter review of monetary policy announced on Thursday.
The key short-term lending rate (repo rate)has been hiked by 0.25 pc to 7.50 pc.
While banks are not as exposed as the corporate sector during the initial stage of the pandemic, the strain on lenders could ultimately be profound. Banks face a second-order hit compared with the corporate and household sectors.
After two rate hikes in less than six weeks aimed at curbing inflation, RBI Governor Raghuam Rajan on Wednesday said the central bank may be done with interest rate increases as their impact on the economy is assessed.
The deadly American air strike on a hospital in northern Afghan city of Kunduz that killed 22 people was caused primarily by "human error" and officers closely associated with the incident have been suspended, a top US general based in Afghanistan said on Wednesday.
Dr Kalyani Gomathinayagam, a young Indian doctor who volunteered to spend four weeks in west Africa helping those suffering and dying of Ebola, speaks to Vaihayasi Pande Daniel/Rediff.com why she took on an assignment many would shy away from.
Highlights of RBI's third quarter review of monetary policy.
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