'If you invest in a rush at the last moment, you could compromise on selecting the best tax-saving options.'
With inflation moderating slightly in recent weeks, HDFC chairman, Deepak Parekh, hoped that there would be no further interest rate hikes even though there was a feeling in the market that the peaking interest rates could go up by another 0.5 per cent.
Equity investors will track the trading activity of foreign investors, global trends and ongoing earnings results for further cues, and benchmark indices may continue to witness consolidation in a holiday-shortened week amid the monthly derivatives expiry, analysts said. Markets fell sharply last week amid massive foreign capital outflows and dismal Q2 earnings so far. Weakness in the markets might continue in the near term amid cautiousness among investors ahead of the US presidential election early next month, an expert said.
Conversely a rate hike may have positive effects if it triggers currency appreciation.
The government on Tuesday appointed three external members -- Ram Singh, Saugata Bhattacharya and Nagesh Kumar -- to the RBI's rate-setting Monetary Policy Committee for four years. The central government has reconstituted the Monetary Policy Committee (MPC) of RBI, the finance ministry said in a statement. Ram Singh is the director of the Delhi School of Economics, Saugata Bhattacharya is an economist, and Nagesh Kumar is the director and Chief Executive, Institute for Studies in Industrial Development, New Delhi.
'It's advisable not to go overboard on a banking sector fund or any other sector fund.'
'With tuition fees for international students rising, education loans have become critical for bridging the gap between savings, scholarship, and full cost.'
In a move that will hit the common man, the government on Friday slashed interest rates payable on small savings including PPF and Kisan Vikas Patra (KVP) in a bid to align them closer to market rates.
Dan Denning analyses the correlation between the soaring oil prices and banking rates in the Western world.
"Clearly there is a slowdown in the number of deals. . . interest rates have gone up from eight per cent in the past to now 12 per cent and prices too have gone up but an asset bubble is not there," ICICI Bank Joint Managing Director Chanda Kochhar told PTI. She said that a correction was expected as the present slowdown was in number of deals and not so much in prices.
An interest rate cut, at a time when demand was not showing any sign of revival, would boost sentiments, especially for interest-rate sensitives like the car and real estate sectors, which had been showing negative growth, a majority of the 15 CEOs polled by Business Standard said.
The country's largest public sector lender State Bank of India on Thursday said that it does not expect the interest rates to go up in the short term.
RBI's deregulation drive on saving interest rates has created a competitive environment.
With 7 per cent economic growth, India is not creating enough jobs as reflected by the number of applicants for vacant posts in some states, Reserve Bank's former governor Raghuram Rajan said and suggested the government needs to focus on promoting labour-intensive industries to generate employment. Rajan further said some Indians, especially those at upper level, are comfortable and have high incomes, but consumption growth from the lower half of the country has still not recovered to pre-pandemic level.
After a year of decline, mergers and acquisitions (M&As) in India increased 13.8 per cent, reaching $69.2 billion in the first nine months of 2024, as against $60.8 billion during the same period in 2023. Led by Indian companies and private-equity (PE) firms, 2,301 transactions were signed between January and September this year as compared to 1,855 transactions reported in the same period last year, according to the Bloomberg data.
The private demand is still not picking up and the funds under market stabilisation scheme are also maturing.
Ruling out upward pressure on interest rates in the near future because of high market borrowings, the government on Tuesday said it will not go for additional borrowings due to the impact of erratic monsoons as tax receipts are expected to be robust.
The Reserve Bank kept bank rate unchanged at 6 per cent, short-term borrowing (reverse repo) was kept intact 6 per cent, lending (repo) at 7.75 per cent. Cash Reserve Ratio, a statutory deposit by commercial banks with the central bank, was retained at 7.5 per cent.
In a falling market, the value of your investment keeps going down. However, the reduction in value is purely a notional loss if you remain invested. When you redeem in a falling market, the notional loss becomes a permanent loss, explains Anamika Pareek.
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Else, more capital outflow and pressure on rupee likely.
'If the borrower can't repay the loan due to lack of income or losses from speculative activities, they risk defaulting on it.' 'This could lead to the bank seizing the property.'
RBI is likely to keep interest rates stable in the near term, revealed Moody's. It may also ease its monetary policy stance later in the year.
The value of private equity (PE)-backed mergers and acquisitions (M&As) in India reached a six-year low during the first seven months of the current calendar year, amid ongoing global uncertainties. The total value of these deals stood at $6.2 billion during the period, down from $9 billion in the same period last year, and lower than the $14 billion recorded during the corresponding period in 2019, according to data from LSEG Deals Intelligence. PE funds pool capital from investors, including high-net-worth individuals, to invest in high-return opportunities.
SBI reduced interest rates for minor irrigation loans upto Rs 25 lakhs to eight per cent in the first one year and nine per cent in the second and third years. The existing rates in this category is 10.5 per cent-13,25 per cent.
More than 50 per cent of SIP accounts come from semi-urban and rural areas.
One of the implications of rising interest rates that deserves more attention than it gets in the current discourse is that of deteriorating credit quality.
The country's largest private sector lender ICICI Bank on Thursday said lending rates will start going up any time now, quite contrary to the SBI chairman's projection that borrowers can breathe easy till Diwali.
Consumers may not have got any respite from high interest rates, but they also need not be apprehensive about further increase with the Reserve Bank of India giving a clear signal for stable monetary policy stance.
Economic growth projected at 8.5 per cent for 2007-08; Inflation to be close to 5 per cent.
The Reserve Bank of India on Wednesday expectedly left interest rates unchanged and maintained an accommodative stance as the economy faces a renewed threat to growth due to the resurgence of coronavirus cases.
Many fear that in practice if banks make their customers pay to hold their money, it might lead to a situation where consumers hold on to cash.
'A possible post-election growth momentum may be lost.'
Trumponomics, poor growth, and high valuation certainly don't make a bullish recipe for Indian markets, warns Debashis Basu.
The Central Board of Trustees of the Employees Provident Fund Organisation (EPFO) today decided to retain the previous year's interest rate of 8.5 per cent for the current fiscal.
DBS Bank India on Monday said customers of Lakshmi Vilas Bank, which has now been merged with it, can continue to access all banking services, and interest rates on savings and fixed deposits are unchanged as of now. Lakshmi Vilas Bank (LVB) has now been amalgamated with DBS Bank India Ltd (DBIL), the wholly-owned subsidiary of DBS Group Holdings Ltd, DBS Bank India said in a statement.
Long-term tax-saving FDs can also be considered after the PPF limit has been exhausted.
Wholesale inflation fell to a 3-month low of 2.04 per cent in July on decline in prices of food items especially vegetables, government data released on Wednesday showed. The decline in wholesale price index (WPI) based inflation in July came after it rose for four months in a row till June, when it was 3.36 per cent. It was (-) 1.23 per cent in July last year. In April wholesale inflation stood at 1.19 per cent.
While the RBI deregulated interest rates on fixed deposit schemes in 1997, it continues to fix the rate on savings deposits.
Given the extremely good liquidity situation in the economy, interest rates are likely to remain stable in the next six months, K V Kamath, managing director and CEO, ICICI Bank said.
Housing Development Finance Corporation (HDFC) Chairman Deepak Parekh on Tuesday said that interest rates may rise owing to higher inflation, but lending rates are unlikely to change in the next one month.
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