Sensex falls 215 pts post RBI policy; Nifty at 16,238; RIL sheds 2%

Stock market LIVE: The RBI pegged real GDP growth forecast for FY22 at 9.5 per cent and at 17.2 per cent for FY23.

12:52 PM

POLICY VIEW :: Amar Ambani, Head of Research – Institutional Equities, YES Securities

We infer that RBI is likely to stand put on the Repo rate till the end of this fiscal year, as the endeavor to stabilize growth will be a long-drawn process, given the threat of evolving COVID strains.  In case, growth stabilizes later this year, the process of policy normalization will initially begin with a hike in reverse repo, rather than the repo rate. 

12:41 PM

RBI POLICY VIEW :: Nish Bhatt, Founder & CEO, Millwood Kane International

The decision to extend the on-tap TLTRO scheme once again till December will maintain ample liquidity and support growth. RBI's view of current high inflation being largely transitory in nature and its focus on growth is a big positive. The economy is showing signs of revival, it needs policy support.

12:32 PM

Rate sensitive shares trade mixed after RBI keeps repo rate unchanged

Individually, State Bank of India (SBI), Bandhan Bank, DLF, Oberoi Realty and Godrej Properties were down between 1 per cent and 2 per cent while IndusInd Bank, AU Small Finance Bank, Maruti Suzuki India, Amara Raja Batteries, TVS Motor Company, Prestige Estates Projects, Indiabulls Real Estate were up in the range of 1 per cent to 3 per cent. READ MORE

12:23 PM

RBI Deputy Governor Patra says

>> Important to bring inflation down not immediately but gradually

>> The approach on inflation is not a cold turkey method

12:22 PM

NEWS ALERT :: Lok Sabha passed Taxation Amendment Bill

(Source: TV Reports)

12:06 PM

POLICY VIEW :: Jimeet Modi, Founder & CEO Samco Group

The RBI MPC has continued its accommodative stance and maintained status quo on repo rates for the seventh straight meet in line with market’s expectation. Inflationary tendencies have been affirmed and the MPC has upped its inflation forecast for FY22 to 5.7% labelling inflation driving price pressures as "exogenous and transitory." While additional measures have been announced to comfort the banks on liquidity availability the continuance of the same will foster an atmosphere of affordability, which has emerged as the new characteristic of the housing market. Conditions around aggregate demand still remain weak and any rate hike would have further deferred growth. Hence, the central bank’s policy remained more balanced than aggressive as it remains on heels to ensure adequate liquidity within the economy.

 

12:05 PM

June Quarter Results :: M&M+MVML

>> PAT: Rs 934 crore

>> Revenue: Rs 11,763 crore

>> Ebitda: Rs 1,631 crore, margin: 13.9%

11:55 AM

RBI POLICY VIEW :: Satish Kumar, Research Analyst, Choice Broking

With keeping policy rate unchanged and maintaining accommodative stance, the RBI is trying to support the nascent and hesitant recovery that is trying to secure a foothold in challenging situations. Growth forecast is maintained at 9.5% for FY22 however central bank see some pricing pressure in economy and thereby raised inflation forecast to 5.7% in FY22 from 5.1% earlier.  Further, the extension of TLTRO facility by 3 more months is a welcome move as it ensures sufficient liquidity support to stressed sectors of economy amidst ongoing pandemic.

 

 

11:43 AM

Glenmark Life Sciences makes a quiet debut, lists 4% above issue price

Post listing, the stock moved higher to Rs 799.50, 11 per cent higher against the issue price on the BSE. The stock hit an intra-day low of Rs 737.35 on the BSE and Rs 738 on the NSE. At 11:29 am, it was trading at Rs 772, 7 per cent above its issue price. A combined around 24 million equity shares had changed hands on the counter on the NSE and BSE. READ MORE

11:27 AM

EXPERT VIEW :: MPC reassures status quo on rates, but changes view on inflation

The credit policy announced on Friday was not expected to come out with anything very different from the earlier announcements. There are no changes in policy rates as expected with the Reserve Bank of India (RBI) reiterating commitment to growth, which is still in early stages. But yet there are some things that the market always looks forward to in terms of numbers and language. Both are important. Any change in forecasts would make economists rework their models to see if they need to change their assumptions. The language is important, as it could talk more about what to expect from Mint Street in the future. READ MORE

11:16 AM

RBI on Achievement of Financial Parameters under Resolution Framework 1.0

>> The resolution plans implemented under the Resolution Framework for COVID-19 related stress announced on August 6, 2020 are required to meet the sector specific thresholds notified in respect of five financial parameters, four of which are related to the operational performance of the borrowing entity.

>> Recognising the adverse impact of second wave of COVID-19 on revival of businesses, and the difficulty it may pose in meeting the operational parameters (Total Debt to EBIDTA ratio,Current Ratio, Debt Service Coverage Ratio and Average Debt Service Coverage Ratio), it has been decided to defer the target date for meeting the specified thresholds in respect of the above parameters to October 1, 2022 from March 31, 2022.

>> As regards the parameter Total Outside Liabilities/Adjusted Total Net Worth (TOL/ATNW), this ratio reflects the revised capital structure (i.e., debt-equity mix) as required under the implementation conditions for the resolution framework and was expected to be crystallised upfront as part of the resolution plan. Accordingly, the date for achieving the same remains unchanged, i.e. March 31, 2022.

11:13 AM

RBI on Export Credit in Foreign Currency

Authorized dealers are currently permitted to extend Pre-shipment Credit in Foreign Currency (PCFC) to exporters for financing the purchase, processing, manufacturing or packing of goods prior to shipment at LIBOR / EURO-LIBOR / EURIBOR related rates of interest. In view of the impending discontinuance of LIBOR as a benchmark rate, it has been decided to permit banks to extend export credit using any other widely accepted Alternative Reference Rate in the currency concerned.

11:12 AM

RBI on LIBOR Transition

The Reserve Bank has been engaging with banks and market bodies to proactively take steps, as necessary, to ensure a smooth transition for regulated entities and financial markets. In this context, it has been decided to amend the guidelines related to export credit in foreign currency and restructuring of derivative contracts as detailed below

11:12 AM

RBI POLICY VIEW :: Vikas Jain, Senior Research Analyst at Reliance Securities

The Monetary Policy Committee (MPC) has decided to maintain status quo and keep interest rates unchanged. Currently, the repo rate is 4 percent and reverse repo rate is 3.35 percent. Reserve Bank of India (RBI) Governor Shaktikanta Das said the policy stance continues to be “accommodative”. The growth rates for GDP remains real GDP growth unchanged at 9.5% for FY22 and the economy in much better position compared to the previous quarter. Despite inflation higher at 5.7% v/s 5.1% the continuous monetary, fiscal and accommodative stance indicates a dovish policy and we remain positive for the markets in the medium term.

11:03 AM

EXPERT TAKE :: Inflation debate is getting prominent within MPC

In an expected move, MPC kept the rates unchanged and continued with the accommodative stance. Though the MPC voted unanimously to keep the rates unchanged, votes for the continuance of accommodative stance were at 5:1. It shows that the inflation debate is getting more prominent. The forecast of inflation rate for FY22 was revised upwards to 5.7 per cent from 5.1 per cent announced earlier. RBI's assurance to conduct OMOs when needed would help to keep the bond yields in check.

Views by: Deepthi Mathew, Economist at Geojit Financial Services