Probably 35 bps. There could be even an encore in February 2023 to take the policy rate to 6.5% before the financial year ends, predicts Tamal Bandyopadhyay.
Bankers have been criticised for not passing the benefits of rate cuts
In a scathing attack on Prime Minister Narendra Modi, former prime minister Manmohan Singh on Thursday accused him of lowering the dignity of public discourse and the gravity of the office of the PM by giving "hateful speeches" during the poll campaign.
Brokerage firm Nomura said inflation levels in India are close to post global financial crisis lows, and also retained its positive stance on Sensex.
Reserve Bank Governor Raghuram Rajan expressed confidence in India's growth and said the country is on target to meet Jan inflation target of below 6%.
The repo rate, at which the central bank lends to the system, will come down to 5.75 per cent after the cut.
In a recent note, the global brokerage firm said India now commands a weight of 19 per cent in the above-mentioned portfolio as compared to 18.2 per cent in September 2023. India, it said, is a large liquid market and remains a counter-weight to North Asia if a slowdown in the West occurs and China's recovery disappoints.
Indian factory growth likely slowed in Jan, inflation to stay muted.
Campaigning ended on Wednesday evening for 102 Lok Sabha seats across 21 states and Union territories which will go to polls in the first phase on April 19 with top leaders of the Bharatiya Janata Party-led National Democratic Alliance and the opposition Indian National Developmental Inclusive Alliance (INDIA) making a last-gasp effort to woo voters.
The former Congress president alleged that PM Modi had a "monopoly over corruption".
Moody's has a 'positive' outlook on its 'Baa3' rating on India.
The policy will be presented in the backdrop of rising inflation.
A lack of adequate disclosures raises the financing costs of corporate firms, especially sub-investment grade ones, and keeps the capital markets small, believes RBI deputy governor Viral Acharya.
According to the global financial services major, inflation may remain sticky, with a possible El Nino effect on the monsoon likely to push up food prices and geopolitical uncertainties seen pumping up global commodity rates.
This period of strong growth not only offers opportunities but also calls for strategic considerations to ensure sustainable development and equitable prosperity in the years to come, suggests Sujan Hajra.
While a pick-up in summer monsoon rains in recent weeks is expected to cool food inflation, most analysts don't anticipate another rate cut before a new governor is on the job
Mahindra & Mahindra was the top laggard in the Sensex pack, sliding 2.05 per cent, followed by Bajaj Finance, Tata Steel, SBI, Asian Paints, Kotak Mahindra Bank and Titan. However, IT majors HCL Technologies and TCS defied the trend and gained 1.02 per cent and 0.47 per cent, respectively. FMCG firm Hindustan Unilever rose 0.32 per cent.
Raghuram Rajan remains focused on a long-term inflation target of 4 percent.
Asserting that the economy was in a "resilient" mode, Finance Minister P Chidambram on Tuesday said inflation was under control, but the challenge was to mobilise resources to rev up investments.
The Reserve Bank of India's (RBI's) decision to withdraw the incremental cash reserve ratio (I-CRR) is expected to benefit banks during the festival season. They are likely to increase deposit rates by up to 25 basis points (bps) in select maturity buckets. The rise in demand for funds to cover tax payments and meet quarter-end business targets could influence rate decisions by banks, according to bankers and money market executives.
After dipping by as much as 17 per cent in April, readymade garment (RMG) exports of all textile categories in India are showing signs of recovery in May. Exporters in Tiruppur are indicating a rise in rupee terms during the month, while it may take at least a month for volumes to be back in positive terrain. Among the global majors that are placing orders in the textile hub include Walmart, H&M (Hennes & Mauritz AB), Tommy Hilfiger and Target.
Titan surged 2.98 per cent, followed by IndusInd Bank, ITC, JSW Steel, Infosys, Tech Mahindra, Tata Consultancy Services and Maruti. Hindustan Unilever, Asian Paints, Bharti Airtel and HDFC Bank were among the laggards.
Leaders of several Indian National Developmental Inclusive Alliance (INDIA) parties met on Saturday to take stock of the opposition's preparations leading up to the June 4 counting of votes polled in the Lok Sabha elections, and claimed they will get more than 295 seats, enough for them to form the next government.
Inflation in pulses, vegetables and cereals was higher in Jan.
'A weak monsoon always spells disaster. But it's too early to have a pessimistic view.'
For protein rich items such as meat and fish, eggs as well as milk and products, the inflation in May slowed compared to last month
Domestic stock markets would be driven by inflation numbers, global trends, and the last batch of Q4 earnings this week, analysts said. Markets will also react to industrial production data and consumer inflation numbers that were released after market hours on Friday. "Participants will react to macroeconomic data viz. IIP and CPI first, which were released post-market hours on Friday.
rediffGURU and financial planning expert Colonel Sanjeev Govila (retd) answers your personal finance-related questions.
The report expects the inflation framework, fiscal consolidation, infrastructure spending, FDI focus and strong external affairs policies to continue.
Bharatiya Janata Party leader Maneka Gandhi on Saturday indicated that her son Varun Gandhi's writings that were sometimes critical of the government may have cost him the party's Lok Sabha ticket from Pilibhit but asserted that he would do very well even without it.
In nearly 100 seats, the BJP stands almost no chance of winning. In 200 seats, it is a direct fight between the BJP and the Congress where the BJP has an upper hand. In 243 seats, the BJP is pitted against regional parties and it is not going to be easy. That is why 400 seats may end up as a pipe dream, states Ramesh Menon, author of Modi Demystified: The Making of a Prime Minister.
Data for more than 100 countries over 47 years shows little sign that currency appreciation causes a dent in inflation levels.
Rising prices of food items and industrial goods are likely to push inflation to eight per cent in the next six months, much above the RBI's projection of 5 per cent, global financial services firm Nomura has said.
Following are the highlights of the Economic Survey 2022-23 tabled in Parliament on Tuesday
Prices may go up because of higher energy costs, caused by the rise in shipping charges, with commercial vessels taking a longer route to avoid the troubled Red Sea region, the finance ministry said on Monday. Iran-backed Houthi rebels of Yemen are repeatedly attacking ships in the Red Sea. While the global economy is grappling with challenges such as sticky inflation, sluggish growth, and mounting fiscal pressure, India's external sector could face "potential risks" due to the ongoing geopolitical tensions, according to the finance ministry's report on the review of the Indian economy.
However, some analysts say RBI Governor Raghuram Rajan may delay the rate cuts amid mounting concerns over the government's fiscal health.
Thanks to Rajan we are an inflation-targeting country now
The Reserve Bank on Tuesday cautioned that continued uncertainty over monsoon could stoke food inflation, but expressed the hope that government policies will improve supplies in the coming months.
Checks on the large capital flows could be on the anvil as the Reserve Bank of India on Wednesday said its inflation target for 2007-08 hinges on a "more active" capital account management.
Reserve Bank of India expects the average annual inflation to come down to 2 to 3 per cent in the coming years, its deputy governor Rakesh Mohan said on Monday.
