The Budget offers a limited-time regularisation window with clear thresholds, defined payments, and immunity from penalty or prosecution.
In today's circumstances, however, getting people to borrow more is the last thing on the minds of financial service providers. Most of them are reeling under the weight of assets whose prices have declined precipitously because nobody in his right mind wants to buy them.
From the Sensex firms, Infosys, Tata Consultancy Services, HCL Tech, Tech Mahindra, Tata Motors, Sun Pharma, Maruti and Titan were among the major gainers. Bharat Electronics, Asian Paints, Bharti Airtel and ICICI Bank were among the laggards.
The key rate cut by RBI is too little to have any major positive impact on demand for automobiles but it is still a move in the right direction, according to the industry players.
This is the first Budget in my memory of Budgets over the last half a century which has embraced upfront, enthusiastically and emphatically, technology, modernity and fiscal sobriety, notes Shreekant Sambrani.
'The effect will be seen two-three quarters down the line.'
Market breadth ended weak with 1,688 losers and 1,205 gainers on the BSE.
SBI, the country's largest lender, first announced a rate cut of 0.25 per cent in its home loan rates on Thursday, forcing HDFC, the second biggest home loan financier, to respond.
The latest rate cut has not yet trickled down to consumers.
The repo rate, at which RBI lends to the banking system, will be at 7.5%
So far this year, the rupee has fallen by 4.2 per cent, the worst among its Asian peers.
They feel reducing policy rates will help to boost production and revive the economy.
Shares of tyre manufacturers have outperformed broader equity benchmarks, buoyed by multiple tailwinds. Softer raw material prices, an uptick in demand from automakers following the reduction of the goods and services tax (GST) rates, and steady replacement demand have lifted sentiment toward the sector.
Scanty rain would have put extra pressure on food prices.
India has been on an FTA-signing spree of late. Since 2021, it has signed eight trade agreements, three of which -- with the UK, Oman and New Zealand -- were finalised in 2025 alone.
Domestic PMI data, US Federal Reserve meeting minutes and the progress on India-US trade deal negotiations are likely to influence movement in the equity market in the week ahead, according to analysts. Moreover, the trading activity of foreign investors would also influence the equity market trends.
Rate sensitive sectors were among the top gainers with Tata Motors and ICICI Bank leading the gains on the Sensex.
High crude oil prices, which the central bank perceives as a risk to inflation, may limit the extent of rate cut to 25 basis points rather than 50 bps, economists said.
A fall presents an opportunity to buy rate-sensitive stocks.
Experts say lending rates won't come down significantly,as banks are grappling with NPAs
Coforge's planned $2.35 billion all-stock acquisition of US-based Encora has divided the Street, with a few brokerages terming it a "strategically positive" but execution-heavy bet while others raising valuation concerns.
Reserve Bank of India (RBI) Governor Raghuram Rajan's decision to cut rates last week surprised even top officials.
'Calibrated depreciation will help rebalance external fundamentals, offset some of the tariff differentials with competitors, improve the competitiveness of domestic substitutes vis-a-vis Chinese imports, and contribute to the easing of financial conditions at a time when the inflation rate is unusually low,' explains Sajjid Z Chinoy, head of Asia Economics at JP Morgan.
Price rise in services sector after the goods and services tax (GST) gets implemented and the pay hike of central government employees will make inflation control a tough job for the central bank
If numbers change, there will be scope for more rate cuts.
"Interest rates won't go down in isolation. Funding costs should come down before we can think of reducing interest rates... With the steps (taken by the RBI and the government), the interest rates will clearly start declining...We have a few days to watch our liquidity situation (before deciding on a rate cut)," ICICI's MD and CEO K V Kamath told reporters in Mumbai on November 5.
he reason behind the cut in policy rate seems to be a slowing economy
Commerce and Industry Minister Kamal Nath has said a hefty cut in the US interest rates will have a positive impact for the Indian exports, but industry leader Rahul Bajaj felt the move will further hit exporters. "The US Fed's decision would rather boost Indian exports to America as it would raise demand in the biggest economy of the world," Nath said at the World Economic Forum annual meet in Davos.
'We kept this Budget on a larger plank, rather than on one incident, however serious.'
Brokerages expect the company to continue outperforming in the auto segment, driven by launches and the strong trajectory of healthy bookings.
The RBI cited lower-than-expected inflation, weak crude prices and weak demand, as well as the government's commitment to sticking to a fiscal deficit target as reasons.
Silver prices rallied sharply by Rs 15,000 to hit a lifetime high of Rs 265,000 per kg in the national capital on Monday, and gold advanced to a fresh record of Rs 144,600 per 10 grams, mirroring strong gains in the global markets.
Shares of rate sensitive sectors such as realty, infrastructure, banking and automobiles ended higher ahead of the Reserve Bank of India (RBI) mid-quarter policy review on June 17.
You must remain invested in bank deposits, unless you are considering the idea of earning higher returns by moving to gilt or liquid funds, says Adhil Shetty, CEO, BankBazaar.com.
Higher rural incomes, pay commission benefits, and lower interest rates are key positives: Analysts
Jaitley said inflation has been under control for long and is likely to remain so on the back of good monsoon and unlikely spike in oil prices.
'In case a particular industry has not passed on the benefits and if we receive complaints, we will take up the matter with the industry body concerned.'
The GST Council on Wednesday approved a two-tier rate structure of 5 and 18 per cent, which will be implemented from September 22.
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