It is thought that the RBI has been accumulating dollars to fight odds.
Heavy unwinding by foreign portfolio investors and lacklustre equities dampened the sentiment
The Indian rupee, however, saw the largest bullish bets in one year as worries about inflation eased.
Given the impact Covid-19 pandemic had over the world economy, analysts expect global central banks, especially the US Fed, to keep the liquidity tap open, which, in turn, is likely to keep the equity markets, especially those in the emerging markets, buoyant.
This is the first hike in about a decade, signaling a recovery.
There are more near-term global draggers in store for the domestic stock market, as the central banks across the US, Japan and Europe are likely to further hike their benchmark interest rates
We have not suffered such huge price shocks across so many basic commodities, at the same time, in decades. Has the inflationary impact of all this been factored into stock prices as yet, asks Debashis Basu.
Gaurav Garg, head of research at CapitalVia Global Research Limited will answer your stock market queries.
My sense is that we are in a situation similar to 2011-13, notes Debashis Basu.
Foreign portfolio investors (FPIs) have pulled out Rs 4,515 crore from the equities segment in the first half of July as they turn cautious towards the Indian market. "With markets trading near all-time high, FPIs would have chosen to book profits. "They have also been staying on the sidelines given high valuations and most likely on the back of the risk of a potential third wave of the coronavirus pandemic," said Morningstar India associate director (manager research) Himanshu Srivastava. Though the continuing firmness in the dollar and the possibility of rising bond yields in the US do not augur well for capital flows into emerging markets like India, there is no immediate worry at the moment, he said.
Many analysts over the past week have said the RBI has legroom to cut rates to the tune of 65 bps by June and some like Barclays and BofA have also spoken about the likelihood of an inter-meeting cut.
Demonetisation impact, earnings growth, central bank policies will get attention.
'It is going to be a tough balance for the RBI to manage economic stability and ensure smooth government borrowing.'
Economists warn of the impact that a Fed rate rise could have on emerging economies.
The broader markets ended negatively with mid-caps and small-caps shedding 0.5 per cent on the BSE.
The AIADMK is convinced that the BJP will remain an electoral burden for a long time to come, beginning the Lok Sabha polls next year, reveals N Sathiya Moorthy.
'The Russian attack might be a wakeup call for Europe.'
Indiana Pacers coach Nate McMillan has said US President Donald Trump's 2016 campaign slogan 'Make America Great Again' rings hollow because the country has never been 'great' for its Black citizens. McMillan's comments come in the wake of weeks of protests sparked by the death of George Floyd, an unarmed Black man, under the knee of a white police officer in Minneapolis.
'Our competitiveness with China is very important.' 'If the exchange rate depreciates, it is good for us because it helps in our competitiveness.'
The key is to act and not wait and watch before the limited window of opportunity shuts, argues Shanthie Mariet D'Souza.
The report did not specify the impact the rate hike will have on India.
Monetary policy easing, coupled with the relaxation of lending rules and greater election-driven fiscal spending in the first quarter of 2019, will provide some support to growth during the first half of 2019-20 fiscal
Titan was the top laggard in the Sensex pack, shedding 1.39 per cent, followed by HDFC, Axis Bank, Kotak Bank, HCL Tech and Tech Mahindra. On the other hand, Asian Paints, SBI, M&M, TCS, Bajaj Finserv and ICICI Bank were among the winners, spurting as much as 3.25 per cent.
'From the very start, PM Modi was insistent that visiting foreign leaders should be exposed to an India beyond its capital.' 'Through these experiences, he felt that the full Indian narrative would be much better understood across the world,' explains External Affairs Minister S Jaishankar. A riveting excerpt from Bluekraft Digital Foundation's Modi@20: Dreams Meet Delivery.
An immediate RBI rate cut will lower lending rates for banks' MSME/retail/mortgage loans before the 'busy' industrial season ends in March.
The RBI is widely expected to raise its key repo rate by 25 basis points to 8.00 per cent on Wednesday, its third such hike in four months after recent data showed both wholesale and retail inflation at multi-month highs.
RBI Governor cautioned against more volatility.
Tech Mahindra was the top loser in the Sensex pack, shedding over 3 per cent, followed by NTPC, IndusInd Bank, Kotak Bank and Reliance Industries. NSE Nifty fell 185.60 points to 17,671.65.
Thus far in FY21, BSE, NSE have rallied 70 per cent and 71 per cent, respectively.
India's Gross Domestic Product (GDP) is expected to expand by 9.2 per cent in the current financial year, according to the Economic Survey 2021-22 tabled in the parliament on Monday. "Advance estimates suggest that the Indian economy is expected to witness real GDP expansion of 9.2 per cent in 2021-22 after contracting in 2020-21. "This implies that overall economic activity has recovered past the pre-pandemic levels," Economic Survey noted. Almost all indicators show that the economic impact of the "second wave" in Q1 was much smaller than that experienced during the full lockdown phase in 2020-21 even though the health impact was more severe, it said.
Any market correction, analysts say, would be an attractive entry point for risky assets, which should do well over the medium-to-long term.
Adopting a wait- and-watch approach ahead of US Fed meeting
National auditor says a significant part of NPAs was due to fraud and may never be recovered
West Bengal Chief Minister Mamata Banerjee was the Trojan horse of the Bharatiya Janata Party and should be kept out of all efforts to cobble up an opposition platform ahead of the 2024 Lok Sabha elections, senior Congress leader Adhir Ranjan Chowdhury alleged on Wednesday.
Industrial countries cannot at this point wash their hands off developing economises and say we will do what we need to, and you do the adjustment you need to, says RBI Governor.
The central bank can directly print money and finance the government, but it should avoid doing so unless there is absolutely no alternative, former RBI governor D Subbarao on Wednesday said while pointing out that India is 'nowhere' near such a scenario. In an interview with PTI, Subbarao suggested that to deal with the second wave of COVID-19 induced slowdown in the economy, the government can consider Covid bonds as an option to raise borrowing, not in addition to budgeted borrowing, but as a part of that.
A recovery in rupee, buying by domestic institutional investors, encouraging earnings by select blue-chips and stock specific buying helped the market get back on its feet
The BSE mid-cap and small-cap indices ended flat against Sensex's 0.4% up-move.
HDFC, TCS, RIL, ITC and ICICI Bank dragged the Sensex by over 100 points.
The broader markets were marginally higher with mid-caps and small-caps gaining 0.1-0.4 per cent on the BSE.
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