MARKET WRAP: Sensex ends 250 pts lower as RBI maintains status quo on rates

The Nifty Metal index settled 3.7 per cent lower weighed by Jindal Steel and Power Hindalco and Tata Steel. Nifty Auto index, too, slipped 2.3 per cent due to a fall in Bharat Forge and Tata Motors

2:52 PM

RBI POLICY STATEMENT :: 7 factors that will impact inflation

 

First, inflation projections incorporate benign food prices based on the realised outcomes of food inflation in recent months. The prices of several food items are at unusually low levels and there is a risk of sudden reversal, especially of volatile perishable items. 

 

Second, available data suggest that the effect of revision in minimum support prices (MSPs) announced in July on prices has been subdued so far. However, uncertainty continues about the exact impact of MSP on inflation, going forward. 

 

Third, the medium-term outlook for crude oil prices is still uncertain due to global demand conditions, geo-political tensions and decision of OPEC which could impinge on supplies. 

 

Fourth, global financial markets continue to be volatile. 

 

Fifth, though households’ near-term inflation expectations have moderated in the latest round of the Reserve Bank’s survey, one-year ahead expectations remain elevated and unchanged. 

 

Sixth, fiscal slippages, if any, at the centre/state levels, will influence the inflation outlook, heighten market volatility and crowd out private investment. 

 

Seventh, the staggered impact of HRA revision by State Governments may push up headline inflation. While the MPC will look through the statistical impact of HRA revisions, it will be watchful of any second-round effects on inflation.

2:51 PM

RBI Guv: PMI for manufacturing and Services has remained in expansion mode in November

2:49 PM

RBI Guv: Flow bank credit has become broad-based

2:48 PM

RBI Guv: Recent retreat in energy prices has led to decline in inflation

2:45 PM

RBI POLICY IMPACT Bank, auto stocks slip (Source: NSE)

2:43 PM

NEWS ALERT The next meeting of the MPC is scheduled from February 5 to 7, 2019

2:43 PM

GDP growth projection (Source: RBI policy document)

2:42 PM

Inflation projection (Source: RBI policy document)

2:41 PM

RBI POLICY STATEMENT

Based on an overall assessment, GDP growth for 2018-19 has been projected at 7.4 per cent (7.2-7.3 per cent in H2) as in the October policy, and for H1:2019-20 at 7.5 per cent, with risks somewhat to the downside

2:40 PM

RBI POLICY STATEMENT

In the fourth bi-monthly resolution of October 2018, CPI inflation was projected at 4.0 per cent in Q2:2018-19, 3.9-4.5 per cent in H2 and 4.8 per cent in Q1:2019-20, with risks somewhat to the upside.

Excluding the HRA impact, CPI inflation was projected at 3.7 per cent in Q2:2018-19, 3.8-4.5 per cent in H2 and 4.8 per cent in Q1:2019-20. The actual inflation outcome in Q2 at 3.9 per cent was marginally lower than the projection of 4.0 per cent. However, the October inflation print at 3.3 per cent turned out to be unexpectedly low.

2:39 PM

NEWS ALERT SLR to go down by 25bps every quarter from January to March

2:37 PM

Reverse Repo rate unchanged at 6.25%

2:37 PM

MPC votes 5:1 to retain stance to 'Calibrated Tightening'

2:36 PM

Oct-March CPI inflation target projected at 2.7%-3.2%

2:35 PM

NEWS ALERT SLR cut by 25 bps; currently stands at 19.5%