Sensex snaps 3-day losing run on RBI policy, rises 412pts up; yields up 2%

CLOSING BELL: The RBI also announced revised inflation and GDP growth forecasts in-line with market expectations

12:20 PM

EXPERT VIEW :: Rates to inch up in the medium-term

Despite a strong economic recovery and a less disruptive Omicron wave, the geopolitical tensions, supply chain disruptions, commodity inflation, and oil prices sky-rocketing, RBI revised its inflation estimates for FY23 upwards to 5.7% from 4.5% earlier. GDP growth is likely to be impacted and expected at 7.2% for FY23 (vs 7.8% earlier). We believe, over the medium-term, policy rates are likely to gradually inch up

Views by: Naveen Kulkarni, Chief Investment Officer, Axis Securities

12:16 PM

RBI Press Conference :: Have now put inflation before growth in the sequence of priorities, says Guv Das

12:11 PM

JSW Steel combined crude steel output grows 37%; FY22 production soars 38%

JSW Steel on Friday posted a combined crude steel production of 5.98 million tonne (MT) for the quarter ended March 31, 2022. Read more

11:33 AM

RBI policy: Clear sign that happy days are over, says Madan Sabnavis, chief economist, BOB

The Reserve Bank of India’s (RBI’s) policy review this time was always going to be special for several reasons. First is that after the optimism revealed in the February policy, things are looking very different. Read here

11:25 AM

EXPERT COMMENTS: Current juncture a tough balancing act for RBI

<< Current juncture presents a tough balancing act, with rising inflation and slowing growth.

<< Given the lower growth forecast and inflation driven by commodity and oil prices rather than economic over-heating, it is good that the RBI has taken a pro-growth stance by keeping policy rates unchanged.

<< At the moment, businesses need all the support they can get to to ensure that a fledgling private capex cycle does not get disrupted.

Views by Ashish Khandelia, Founder, Certus Capital.

 

11:18 AM

EXPERT VIEW: RBI moves towards path of gradual interest rate hikes

<< The downward revision of GDP growth rate and upward revision of retail inflation were expected.

<< The RBI is now anticipating much faster rise in inflation than earlier.

<< The RBI is also trying to flatten the yield curve by pushing the short-term rates higher

<< And, by taking measures to ensure that the yield on long dated securities do not rise much.

<< With today's measures RBI has moved to the path of gradual increase of policy interest rate and phased withdrawal of liquidity.

<< From a medium term perspective, the measures are supportive of growth, price stability and orderly development in the financial markets.

Views by Sujan Hajra, Chief Economist and Executive Director, Anand Rathi Shares & Stock Brokers.

 

 

 

11:11 AM

Rate sensitive shares trade mixed after RBI keeps repo rate unchanged at 4%

Shares of rate sensitive sectors such as financials including banks, non-banking finance companies (NBFCs), housing finance companies (HFCs) and micro-finance institutions (MFIs), real estate and automobiles traded on a mixed note after the six-member Monetary Policy Committee (MPC) kept the repo rate unchanged at 4 per cent. Read more

11:01 AM

EXPERT VIEW :: RBI policy highlights growth, inflation can be better if crude declines sharply

Retaining the Repo rate at 4 percent & Reverse repo to 3.35 percent, continuing with the accommodative stance on expected lines.

 

Recognising the new reality of higher crude triggered by the war the RBI, as expected,  reduced the FY23 GDP growth rate projection to 7.2 per cent from 7.8 per cent earlier and raised the CPI inflation projection for FY23 to 5.7 per cent from 4.5 per cent earlier. This is based on the assumption of crude at $100. This implies that growth and inflation can be better if crude declines sharply if the war hopefully ends early. The reverse can be true if the war aggravates and crude spikes much abovd $100.

 

The Governor rightly emphasized India's macro strengths pointing to the improvement in the external situation helped by the record exports, ample forex reserves of $608 billion and strengthening of the financial sector. A new tool introduced by the central bank is the SDF (Standing Deposit Facility) to absorb liquidity. SDF will be the floor of the LAF corridor

Views by: V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services

10:57 AM

Industry reacts to RBI Policy

For the real estate sector, low interest rates for a long period of time has served as a key catalyst for the resurgence of demand.  The status quo on REPO rates will help maintain the current demand levels as interest rate for both homebuyers and developers are likely to be maintained by financial institutions.

Views by: Shishir Baijal, Chairman & Managing Director at Knight Frank India

10:57 AM

RBI MPC outcome for FY23: Top 10 highlights

>> Repo rate unchanged at 4 per cent, maintains 'accomodative' stance
>>  Inflation forecast revised to 5.7 per cent for FY23 from 4.5 per cent
>> Real GDP growth for FY23 is seen at 7.2 per cent
>> Engage in gradual, calibrated reduction of liquidity in multi-year timeframe
>> Forex reserves remains healthy at $606.5 billion as of April 1
>> GDP growth seen at 16.2 per cent in April-June 2022
>> Restore liquidity adjustment facility (LAF) corridor to 50 bps
>> MSF and Bank rate remain steady at 4.25 per cent
>> Money market opening time to restore to 9 AM from April 18
>> HTM limits will be restored to 23 per cent from 22 per cent

10:53 AM

ALERT: SBI official says expect 25-30 bps increase in deposit rates

10:50 AM

RBI Policy :: Guv Shaktikanta Das proposes to reduce net-worth requirement for BBPS services

>> Proposes to issue guidelines for Payment system operators

10:42 AM

Sensex heatmap: 18 out of 30 index constituents move higher

10:42 AM

RBI Policy :: HTM limits will be restored in a phased manner & enhanced under SLR to 23%.

>> RBI proposes to enhance HTM category from 22% to 23% of NDTL, says Governor

>> Banks can include eligible SLR securities under enhanced limit

Note: HTM is Held Till Maturity

10:39 AM

Rupee climbs 21 paise against US dollar