More rate cut by RBI unlikely this fiscal, say Ind-Ra
Bankers said high interest rate could make Indian economy sluggish given that inflation is around 5%
The 30-share Sensex ended down 339 points at 28,119 and the 50-share Nifty closed 100 points lower at 8,438.
Industrial ouput, however, was seen falling 0.6 per cent in January
The survey showed firms passed on a greater cost burden to consumers. Prices charged rose at their fastest pace since October.
The Central bank primarily factors Consumer Price Index while deciding on policy rate.
The survey showed firms' confidence regarding future business grew at the slowest pace in a year last month.
Food and fuel are two perennial areas of concern.
The minders of the Modi government's economic policy believe it would take 7 to 8 quarters -- or till around late 2018 -- for the economy to reap the rewards of demonetisation.
Across the board, demand would appear to be slacker than it should be if we are headed for a healthy recovery.
Markets extended gains for the fourth consecutive day tracking gains in banks, capital goods and oil and gas majors.
'It is almost four years since we've seen strong growth in earnings.' 'The markets have rallied about 20 per cent in the past year, which is ahead of earnings.' 'So, the stress now will be on earnings to catch up.'
On the reduction in the SLR ratio, he said it was a signal from the point of view of long-term reforms.
Infosys, Wipro and HUL among the top losers for the day.
The Reserve Bank has taken some steps to shore up the domestic currency.
It is also likely to assume a deflator of around 4 per cent. That could take the nominal GDP outlook for FY21 to around 10 per cent. It is this nominal GDP forecast on the basis of which the finance ministry is calculating key Budget targets like the fiscal deficit as a percentage of GDP and tax revenue growth for the coming year.
Raghuram Rajan remains focused on a long-term inflation target of 4 percent.
Financials declined amid profit taking while energy shares fell after the government hiked excise duty on transport fuels.
Speaking at an Assocham event, Modi said the recent cut in corporate tax has brought rates to all-time low for businesses, adding that labour force should also be taken care of.
The muted CPI inflation print at 5% earlier this week, followed by a similar WPI number released Wednesday, seems to have spurred India's central bank into action, is how the economists are reading into Reserve Bank of India governor Raghuram Rajan's 25 basis point cut in repo rate.
Sun Pharma was the best gainer among Sensex components, surging 6.91 per cent
A rate cut will bring positive sentiment around the Budget.
Food prices probably fueled a sharp rise in India's retail inflation in December after the record low struck the previous month.
The rupee resumed lower at 61.15 per dollar as against the last weekend's level of 61.07 at the Interbank Foreign Exchange market and hovered in the range of 61.15 and 61.28 before quoting at 61.24 per dollar at 1030 hours.
Indian gold demand seen falling to 8-year low in festive quarter.
The combination of sanctions, and low fuel prices is really hurting the Putin regime.
While headline and core WPI are stuck in a disinflationary phase, the retail measure is inching north.
There is a lot of police action on the ground and even inter-state movement has been stopped, because of which deliveries of essential items via platforms, such as Flipkart, Amazon, Grofers, and Milkbasket, aren't happening. Food-delivery firms -- Swiggy and Zomato -- are facing similar challenges, according to the sources.
Initial share sales are set to dazzle the Dalal Street in 2022 too as companies are expected to garner up to Rs 1.5 lakh crore in the New Year, continuing with the bullish momentum after 2021 turned out to be the best IPO year in two decades for the Indian market. Excessive liquidity and increased retail investor participation ensured a persistent euphoria in the Initial Public Offer (IPO) space wherein companies mopped up more than Rs 1.2 lakh crore this year even as pandemic gloom shadowed the broader economy. In 2022, the higher amount of funds through the primary market will be largely driven by the mega IPO of state-owned Life Insurance Corp (LIC).
Sources said Rajan will make the customary call on the Finance Minister on Monday, a day before he presents the policy.
The 30-share Sensex ended down 66 points at 28,438 and the Nifty ended down 15 points at 8,633.
Voting for the 2014 general elections will begin in April and it is expected Budget 2014-15 will be presented in June.
The US Fed's rate cycle is set to turn later this year, but India is in a much better position than it was in 2013.
Indian Economy poised for growth, say experts.
CPI inflation has declined by almost a percentage point from July, from close to eight per cent to just above seven per cent.
RBI data show one-fifth of all the infrastructure loans are stressed and the share of such loans in overall stressed assets is nearly a third.
It is difficult to reconcile the GDP numbers with other economic indicators.
Record equity divestment by the Reliance Group in its telecom and retail businesses garnering around $23 billion revved up the deal street in 2020, which otherwise would have gone down as one of the dullest on record, and dealmakers are seeing sunnier days in 2021 given the large scope for consolidation in a slew of sectors ravaged by the pandemic. With Jio Platforms alone garnering over $16 billion (Rs 1,18,318 crore) by selling 25.24 per cent stake and Reliance Retail notching up $6.4 billion (Rs 47,265 crore) by divesting around 9 per cent shareholding, the deal street signed off with $85 billion in the deal kitty across 1,270 transactions. This is higher by about 10 per cent over 2019. What is significant is that over a third of the total deal value came from Reliance transactions, say investment bankers.
Dealers say that the full-year outlook remains negative with a projected contraction in retail sales of 15-35 per cent across segments, save tractors, which look set to clock a positive annual growth.
Companies are still struggling to recover from years of exuberance.
