'The assumed linear correlation between forced lower yields, higher bank borrowing from the RBI, higher lending, and higher growth involves leaps of faith, each a step on the quicksand of false beliefs,' warns Debashis Basu.
Further hike will depend on the RBI's assessment
Short term markets should remain volatile, says market expert Pranav Sanghavi.
Check out what you can do in the market today.
A special Central Bureau of Investigation court in Mumbai has convicted four former bank officials in one of the multi-crore securities scam cases and sentenced them to three years imprisonment, 25 years after the scam involving 'Big Bull' Harshad Mehta came to the fore.
Reserve Bank on Tuesday kept the bank rate and CRR unchanged, but hiked repo and reverse repo rate by 0.25 per cent to 5.5 per cent and 6.5 per cent respectively as part of measures to rein in inflation.
The Sensex closed at 13,399.43 down down 400.06 points or 2.90% at 13399.43, and the Nifty down 112.50 points or 2.84% at 3849.5.
Finance Minister P Chidamabaram on Thursday indicated that the increase in reverse repo announced in the Reserve Bank of India credit policy will not raise bank lending rates and allayed fears on inflation by promising steps to ensure
The Sensex dropped to a low of 12,908 in noon deals before finally closing with a loss of 62 points at 12,962.\n
With the government proposing to give flexibility to the Reserve Bank of India in fixing prudential limits, bankers expect a cut in statutory liquidity ratio
The Reserve Bank of India on Tuesday left all the key interest rates unchanged in the first quarterly review of the monetary policy.
To attract more dollar inflows, the Reserve Bank extended the deregulated interest rate scheme for NRE deposits till January 31 next year from the earlier November 30.
The IL&FS management is also talking to its second-largest shareholder, Orix Corporation of Japan, to infuse more funds into the company - in case any shareholder backs out during the rights issue.
According to Soumya Kanti Ghosh, chief economic advisor of the State Bank of India group, a 50 bps rate cut is a possibility, but 25 bps is more likely.
PS banks need to pull up their socks to improve cash flows.
The Reserve Bank of India has already reduced the policy rate by a total of 75 basis points, or 0.75 per cent, since January.
The additional measures to check exchange rate volatility comes within 10 days of RBI taking stern steps to suck out liquidity from the system.
The market direction will be guided by corporate earnings, especially the oil & gas companies, since they were responsible for earnings disappointment in the past quarter as well.
BSE Sensex on Monday closed nearly 34 points higher at 26,350.17 with gains in realty, power, FMCG and oil & gas stocks amid sustained buying by domestic institutional investors.
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KC Chakrabarty who was appointed as RBI deputy governor in 2009, is considered frank with his views.
Better supply management and check on hoarding should be able to prevent food price spikes
The gains will be gradual as the measure will be executed over 12 months or so.
BofA-ML said the liquidity deficit is running higher than the forecasts because the RBI has suspended its bond buybacks or open market operations.
The central bank has lowered its policy rate twice so far in 2015.
Bank Nifty pared all its intraday gains to end over 1% lower led by losses in BoB, ICICI Bank, Axis Bank and Bank of India
Banks seems to be upset over RBI's move over rate cut.
The RBI left interest rates unchanged, saying there was no substantial development on inflation or fiscal fronts to warrant a fresh reduction.
Financial services firm AnandRathi analysed the key points of the policy soon after it was announced.
However, the budget arithmetic is slightly optimistic.
Market breadth turned negative with 1,779 declines over 884 advances on the BSE
RBI had previously cut repo rate by 0.25 per cent each in January and March.
The government's ambitious gold deposit scheme can succeed only if depositors are paid a higher interest rate.
The rupee is expected to remain under pressure in the near term, given the strengthening of the dollar against major global currencies and widening of the trade deficit.
After Chakrabarty's exit there will be two vacancies for deputy governors in the central bank.
The Reserve Bank of India is likely to cut policy rates by 0.25 per cent and keep the cash reserve ratio unchanged at its policy review next week, on the back of slower-than-expected growth and more encouraging inflation readings, says a report by HSBC.
RBI said inflation in the second half of the current fiscal is projected at 2.7-3.2%. It retained its GDP forecast for the current fiscal at 7.4%
The index went below the crucial 50 mark.
As we say shalom to 2016, the key drivers for the markets in the year ahead have become more obvious, says Neeraj Gambhir, managing director and head of fixed income, India, Nomura. First, there is a surging dollar. Second, rising commodity prices. Then, we have the effects of demonetisation.
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