Given the relative rates of gross domestic product growth, the differential will increase.
The 30-share Sensex ended down 245 points at 28,799 and the 50-share Nifty closed down 81 points at 8,750
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.
'Implementation of GST would lead to the growth story of India'.
Inter-ministerial group to meet on Thursday to finalise model concession pact.
Financials declined amid profit taking while energy shares fell after the government hiked excise duty on transport fuels.
Food prices probably fueled a sharp rise in India's retail inflation in December after the record low struck the previous month.
For August, CRISIL core inflation indicator stood at 3.6 per cent, a tad higher than RBI's measure.
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The repo rate continues to be at 8 per cent while the cash reserve ratio has also been retained at 4 per cent despite inflation based on the Wholesale Price Index coming down to a 5-year low of 1.77 per cent in October.
Markets surged in late trades to snap five-day losing streak led by bank shares.
Inflation indexed bonds assure a positive return over inflation.
Reiterating his earlier stance, BJP's Rajya Sabha member Subramanian Swamy has written a letter to Prime Minister Narendra Modi, asking him to sack RBI Governor Raghuram Rajan.
Bankers said high interest rate could make Indian economy sluggish given that inflation is around 5%
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.
The NSE index Nifty ended above the 10,500-mark.
An expected withdrawal of FIIs from the market likely to weaken the rupee against the dollar.
As inflation rate is near the upper limit of the comfort zone, experts rule out rate cuts anytime soon
Though inflation, on the basis of the wholesale price index, is nowhere near the 1990-91 level of 10.26 per cent and India is in a much better position to check it, the greater integration of our economy with the globe has exposed it to a much higher risk of imported inflation.
Don't be surprised if growth in the second half of the financial year drops below 4%, which is where it was in the year before the pandemic, warns T N Ninan.
High inflation print is the price that the Reserve Bank of India (RBI) will have to pay to nurse a fragile growth back, say economists. Wholesale Price Index-based inflation rose to a record high of 12.94 per cent in May, aided by low base effect, but also because of higher fuel and commodity prices. Retail inflation, too, surprised by rising to 6.30 per cent, while the core inflation, which is the non-food and non-fuel component, rose to an 83-month high of 6.55 per cent. These numbers are much above RBI's upper limit of 6 per cent inflation target, but there is very little that the RBI can do at this moment.
If rate cuts are fully transmitted, and RBI continues to cut rates in 2016, and earnings growth picks up as well, current valuations may be justified. Otherwise, equity will remain over-valued, says Devangshu Datta.
The real requirement for the finance minister's explanatory speech is to explain the measures taken in the Budget to influence inflation and growth not just through the announcement of a deficit goal, but more broadly through the impact on money supply, consumer demand, foreign trade and investment, explains Nitin Desai.
The survey showed firms' confidence regarding future business grew at the slowest pace in a year last month.
The RBI has targeted 6 percent inflation by January 2016
Dismissing the contention that the decline in inflation was on account of the steps taken by the NDA government, Chidambaram said he wanted to know, 'what measures were taken by the government that contributed to decline in inflation rates.'
But lower growth numbers in the quarters to come may not mean renewed weakness in the economy at the ground level, says Pranjul Bhandari.
But it is likely that campaign spending resulted in some positive activity through this period.
Train passenger fares may soon be linked to inflation rate, sources say, adding that the new model may be based on the Wholesale Price Index.
Food and fuel are two perennial areas of concern.
Meanwhile, for the fortnight ended March 20, deposits grew 11.42% y-o-y.
Expectations of strong results, consistent performance and investors preference for stocks in the defensive space help the sector outshine broader markets.
Overall slowdown in the economy and growing volumes of unbranded generic medicines in the domestic market are behind poor sales.
ONGC was the top gainer which surged over 4% followed by Axis, SBI, CIL
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During April-February, the index of industrial production, a measure of factory activity, declined 0.1 per cent compared with a 0.9 per cent growth in the corresponding period of 2012-13.
In a recent article, Rajan has ridiculed critics of the exchange rate policy.
Costlier vegetables slowly pushed retail inflation, which had remained well within the Reserve Bank's comfortable level of 4 per cent during most part of 2019, peaked to more than three-year high of 5.54 per cent in November.
Bank Nifty closes at a 30-month high; Rate sensitives lead the rally on RBI rate cut optimism.
The country saw two straight years of deficient monsoons.
RBI Governor has been under pressure from Finance Ministry.
Finance minister Nirmala Sitharaman on Wednesday exuded confidence that inflation would further decline and the government is on track to meet its budgetary target for deficit and said that there is no fear of stagflation in India. Replying to the debate on first batch of Supplementary Demands for Grants 2022-23 in Lok Sabha, the finance minister said inflation has come down and it is now in the tolerable band of the RBI. Inflation has been declining since April 2022 and it is declining further, she said.
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