The government on Friday said the rise in inflation to 5.16 per cent will not put pressure on interest rates as there is ample liquidity in the economy and inflation would moderate once fresh sugar and wheat supply arrive.
While existing investments pipelines are on course, newer projects, which are at conceptual stage, may be affected; companies are concerned that high inflation (the wholesale price index is above 12.6 per cent, a 16-year high) and high interest rates would dampen consumer demand growth, Confederation of Indian Industry President K V Kamath said after a meeting of industry leaders with Finance Minister P Chidambaram.
As per the Budget estimate, net borrowing by the government in the current fiscal is pegged at a whopping Rs 3,97,957.47 crore (Rs 3,979.57 billion) to fund its widening fiscal deficit projected at 6.8 per cent of GDP this fiscal due to a slew of measures taken to boost the economy, which is facing the impact of financial meltdown.
In the second policy review under Governor Shaktikanta Das, the six-member Monetary Policy Committee voted 4:2 in favour of the rate cut.
The Budget offers a limited-time regularisation window with clear thresholds, defined payments, and immunity from penalty or prosecution.
The GST Council at its next meeting may consider a reduction in taxes on air and water purifiers as air quality across the country worsens and access to safe drinking water remains uneven.
Analysts at Morgan Stanley have updated their outlook for the Indian markets, and they now expect the Sensex to hit the 107,000 mark by December 2026 in a bull-case scenario, translating into an upside of 26 per cent from current levels.
The government's Budget announcements providing tax holiday for data centres, setting up of city economic regions (CERs) and funding to improve infrastructure in Tier-II and -III cities may give an indirect boost to India's realty sector, said industry executives.
The rate of interest will be effective from April 1, 2015.
As yields rise, bond prices fall. Higher yields not only translate into losses for investors, it also pushes up borrowing cost for companies as well as government
Bonds are debt (loan) instruments with a typical coupon rate (interest rate) and term (time period). The issuer (borrower) is normally a company, a municipality, a large utility or the government itself.
Suryakumar Yadav suffered another failure during Mumbai's Vijay Hazare Trophy match against Punjab on Thursday.
Since February 2025, the RBI has reduced the policy rate by 100 basis points. In its previous policy review in April, it had also trimmed the repo rate by 25 basis points to 6 per cent.
Banks looking to raise capital via bond sales to fund decade-high credit growth were compelled to put some of these debt issuances on hold amid a sharp rise in yields since late September, sources told Business Standard. A major private lender, Axis Bank, has not yet followed through with a planned issuance of infrastructure bonds worth around Rs 3,000 crore. This is because volatility in the bond market in late September led to investors seeking higher yields, sources said.
Realtors' apex body CREDAI described the RBI decision to cut repo rate by 50 basis points as a bold step and said this will help boost sales of residential properties.
With crude and commodity prices ebbing and the twin deficits under check, the Reserve Bank should have cut the key policy rate to push investments and boost economic growth, India Inc said.
Kuldeep, spin strategy in focus as India prepare for Indore decider
The fact that a major studio put out a silent film starring some of the biggest names in the industry in these concerning times for the film business is the one big takeaway from Gandhi Talks, notes Arjun Menon.
Total pending Customs arrears, including amounts under litigation, court stays and cases where the appeal period has not expired, stood at about Rs 1.36 trillion at the end of December 2024.
Finance Ministry had earlier lowered interest rate to 8.7 per cent for 2015-16.
From the Sensex firms, Bharti Airtel, Power Grid, Tech Mahindra, Infosys, Bajaj Finance and Reliance Industries were among the major laggards. However, Larsen & Toubro, Bharat Electronics, UltraTech Cement and Maruti were among the gainers.
It's just not stocks and mutual funds that help you make good profits in the long run, says Sharath Komarraju, author of 'Money Wise' which, he says, is 'Aam Aadmi's guide to wealth and Financial Freedom'.
Markets regulator Sebi board on Wednesday approved a series of measures aimed at improving investor convenience, easing compliance norms, and deepening participation in the capital and debt markets.
Higher interest rates in the US do not necessarily coincide with capital outflows.
'This has become a necessity now to kick start the investment cycle'
New Delhi will substantially reduce tariffs on industrial and agricultural goods while continuing to protect sensitive sectors. Tariffs on some agricultural products that are not traditionally considered sensitive will be brought down to zero, while in the case of relatively sensitive items, duties will be reduced in a graded manner and quotas will be imposed.
From the Sensex pack, Asian Paints, ICICI Bank, PowerGrid, Larsen & Toubro, Bajaj Finserv, Bharti Airtel, Sun Pharmaceuticals, Maruti Suzuki India, Axis Bank, UltraTech Cement and HCL Technologies were the only gainers. On the other hand, Eternal, Tata Motors' commercial vehicles arm, Mahindra & Mahindra, Tata Steel, Bharat Electronics Ltd, Tata Motors Passenger Vehicles, Trent, Tata Consultancy Services, Hindustan Unilever, and Infosys were among the laggards.
Inflation data, quarterly earnings and global trends will be the major driving factors for stock markets this week, analysts said. Moreover, the trading activity of foreign investors would also influence the equity market trends.
The automobile sector is considered a good indicator of economic health. It has a very long value chain, from primary materials, like metals, glass and plastic, to value-added high-end electronic components, specialised alloys, and software.
Ask rediffGURU Reetika Sharma your insurance, mutual fund and personal finance-related questions.
From the USA to UAE, Canada to Italy, Indian-origin cricketers will represent associate nations at the T20 World Cup. Meet the Desis chasing global glory at a home away from home.
Sarvam Maya banks on its leading man, Nivin Pauly, who grasps at straws and makes the improbable scenes work with his charm, notes Arjun Menon.
The Bank of India has decided to hike the interest rates on foreign currency non-resident deposits denominated in dollar, sterling pound and euro from July 9, 2003.
The US Federal Reserve has announced to maintain its bond purchase tapering programme.
Hardik Pandya's dazzling performance with both bat and ball powered Baroda to an emphatic 149-run victory against Chandigarh.
The core inflation is down and there is a need to push growth.
Three years after IDBI became a bank, Yogesh Agarwal, bank's third chairman and managing director in as many years, is trying to put the pieces in place. After all, as he pointed out in an interview with Business Standard, the erstwhile development financial institution is grappling with a unique situation, where IDBI and the two commercial banks it acquired since 2005 offer loans at different interest rates.
Inflation in India is going to be a persistent problem.
The government has asked manufacturers to revise the maximum retail price (MRP) on unsold stocks in line with the change in GST rates. The government has reduced GST on various products and services, which will come into effect from September 22.
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