Reserve Bank of India Kept its Key Rate at 6.50%, BSE Sensex index Hits All Time High, Rupee All Time Low

The Reserve Bank of India on Friday made no changes to its interest rates, as expected at 6.50% during its December meeting for the fifth consecutive time. Governor Shaktikanta Das signaled those monetary conditions will remain tight for some time as it looks to further curb inflationary pressures. The RBI has projected retail inflation at 5.4 per cent for Financial Year 2024. The bank has the major focus amid expectations of a spike in food prices in coming months and … Continue reading “Reserve Bank of India Kept its Key Rate at 6.50%, BSE Sensex index Hits All Time High, Rupee All Time Low”

Reserve Bank of India Kept its Key Rate at 6.50% Repeating a Hawkish Bias as Expected

The Reserve Bank of India on Friday made no changes to its interest rates, as expected at 6.50% during its October meeting. Guidance remained hawkish as Governor Shaktikanta Das signaled those monetary conditions will remain tight for some time as it looks to further curb inflationary pressures. Reserve Bank of India’s (RBI) medium-term inflation target is 4%. The RBI said it is still in accommodation withdrawal mode. India’s yield curve bear steepened with double digit increases in yields from 5s … Continue reading “Reserve Bank of India Kept its Key Rate at 6.50% Repeating a Hawkish Bias as Expected”

Reserve Bank of India Kept its Key Repo Rate at 6.50% as Expected

The Reserve Bank of India on Thursday made no changes to its interest rates, as expected at 6.50% during its June meeting. Guidance however remained hawkish as Governor Shaktikanta Das signaled those monetary conditions will remain tight for some time as it looks to further curb inflationary pressures. Indian inflation fell to a 18-month low of 4.70% in April, however analysts do not expect India’s inflation to fall to the Reserve Bank of India’s (RBI) 4% medium-term target in a … Continue reading “Reserve Bank of India Kept its Key Repo Rate at 6.50% as Expected”

Reserve Bank of India Surprised Keeping its Key Repo Rate at 6.50%

The Reserve Bank of India on Wednesday surprised by keeping its key repo rate at 6.50% during its April meeting. Guidance however was hawkish as Governor Shaktikanta Das said “our job is not yet finished and the war against inflation has to continue” but markets nevertheless drove a bull steepener across the Indian rates curve. The Reserve Bank of India Monetary Policy Committee (MPC) decision followed a 25-bps hike in February, bringing the rate to level not seen since March … Continue reading “Reserve Bank of India Surprised Keeping its Key Repo Rate at 6.50%”

Asian Development Bank says Upside risks to China’s Growth Outlook Outweigh Downside Risks

The Asian Development Bank (ADB) on Tuesdays raised its growth forecast for developing Asia. Growth in developing Asia is forecast at 4.8% this year and in 2024, up from 4.2% last year. The People’s Republic of China’s (PRC) recovery and healthy domestic demand in India will be the region’s main growth supports this year and next.​ The ADB sees the upside risks to China’s growth outlook outweighing downside risks. ADB forecasts 5% economic growth for China in 2023, up from … Continue reading “Asian Development Bank says Upside risks to China’s Growth Outlook Outweigh Downside Risks”

Reserve Bank of India Hike Rates Sixth Time in a Row to 6.50%

The Reserve Bank of India on Wednesday raised its key repo rate by 25 bps to 6.50% during its February meeting, the sixth-rate hike in a row. Headline Consumer Price Inflation (CPI) remains under the RBI’s upper tolerance limit of 6 per cent. There has been some moderation in food prices with annual inflation easing unexpectedly easing to 5.72% in December of 2022 from 5.88% in November, the lowest reading since December of 2021. With the US dollar pulling back … Continue reading “Reserve Bank of India Hike Rates Sixth Time in a Row to 6.50%”

What’s Next for Adani Group After Short Seller Hindenburg Report Wipes Out Over $50 Billion in Market Value

Indian stock markets were rattled last week by the attack on the Adani Group from US activist investor and short-seller Hindenburg Research’s report into the Indian conglomerate caused Adani’s shares to fall spectacularly. Five of the seven listed Adani Group companies ended the day after 16% to 20% lower, and the other two were halted at the maximum 5% permitted by India’s exchanges for their stocks. Indian stocks had been at all-time highs just over a month ago, the market’s … Continue reading “What’s Next for Adani Group After Short Seller Hindenburg Report Wipes Out Over $50 Billion in Market Value”

India’s Sensex Stock Market Performed the Best in Asia in 2022, Closing Up 4.4% in 2022

India’s blue chip Sensex stock market ended up +4.4% at 60,840 for the year, it was the only major Asian stock market to finish green in 2022. The Indian market hit in all-time high in December. On the last day of the trading year the Sensex was down -0.5% and +1.7% for the week. This was the seventh consecutive year of gains but the smallest since 2018. Growth in the Indian economy overcame high inflation and interest rate hikes by the RBI … Continue reading “India’s Sensex Stock Market Performed the Best in Asia in 2022, Closing Up 4.4% in 2022”

Reserve Bank of India Hike Rates Fifth Time in a Row to 6.25%

The Reserve Bank of India meets on Wednesday and raised its key repo rate by 35 bps to 6.25% during its December meeting, the fifth-rate hike in a row. Headline Consumer Price Inflation (CPI) remains outside the RBI’s upper tolerance limit of 6 per cent. There has been some moderation in food prices with annual inflation easing to 6.77% in October, down from September’s five-month high of 7.41%.  With the US dollar pulling back from its rampage the reprieve from currency … Continue reading “Reserve Bank of India Hike Rates Fifth Time in a Row to 6.25%”

India’s BSE Sensex Stock Market Closes at Record High

India’s BSE Sensex 30-pack index on Thursday settled at a new closing high of 62,272.68, up 762.10 points or 1.24% extending its rally to the third straight day. During the day, it jumped 901.75 points or 1.46 per cent to its lifetime high of 62,412.33 led by large caps. The move tracked a firm trend in global markets after the US Fed minutes indicated a slower pace of rate increase that bolstered investors’ sentiment. Policy-sensitive tech shares benefited from the … Continue reading “India’s BSE Sensex Stock Market Closes at Record High”