Business News Highlights: Sensex Settles 1618 Points Up, Nifty Over 23,290 Amid RBI Keeping Repo Rate Unchanged At 6.5%
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Affected by a solid comparison base from the previous year and subdued demand, the domestic commercial vehicle sector is poised to experience a decline of 4-7 per cent in wholesale volumes during the ongoing fiscal year compared to FY23, according to rating agency Icra's statement on Friday. Specifically, the volumes of medium and heavy commercial vehicles (trucks) are projected to shrink by 4-7 per cent year-on-year, influenced by the notable base effect and the repercussions of the Lok Sabha elections on infrastructure projects during the initial months.
Indian benchmark indices extended their gains for the third consecutive session, with the Nifty hovering around the 23,300 mark on Friday. The Sensex surged by 1,618.85 points or 2.16 per cent, closing at 76,693.36, while the Nifty climbed by 468.80 points or 2.05 per cent to reach 23,290.20. The market witnessed 2,598 shares advancing, 801 shares declining, and 76 shares remaining unchanged.
Governor Shaktikanta Das stated on Friday that the Reserve Bank of India has brought 100 metric tonnes of the gold reserve from the United Kingdom to India because there is sufficient domestic storage capacity, and nothing more should be read into it. In FY24, the RBI transferred 100 metric tonnes of its gold that was kept in the UK to local vaults.
Air India is set to inaugurate non-stop flights between Bengaluru and London Gatwick (LGW) starting August 18, according to Bangalore International Airport Ltd., the operator of Kempegowda International Airport Bengaluru (BLR Airport). The new service, featuring five weekly flights, aims to improve connectivity for both business and leisure travellers.
Real estate developers are urging the RBI to contemplate a reduction in the repo rate during the upcoming monetary policy review, aiming to lower the interest rates on home loans and stimulate housing demand. Despite the Reserve Bank of India (RBI) maintaining the repo rate unchanged on Friday, the real estate industry remains hopeful for a favourable adjustment.
Foreign Portfolio Investor (FPI) flows experienced a notable surge during the fiscal year 2023-2024, recording a substantial inflow of $41.6 billion into the Indian financial markets.
The Reserve Bank of India's Governor emphasised that ensuring customer protection remains a top priority within its operational framework of the central bank. He underscores the importance of maintaining a balance between assets and liabilities to uphold financial stability.
Reserve Bank of India keeps repo rate unchanged at 6.5 per cent, says Shaktikanta Das, Governor of the Reserve Bank of India.
In recent years, the world has gone through several challenges. Even then, the Indian economy has stayed resilient, says Shaktikanta Das, Governor of the Reserve Bank of India.
Indian indices opened with little change as investors awaited the RBI policy outcome on Friday. The Sensex declined 72.42 points, or 0.10 per cent, to 75,002.09, while the Nifty dropped 14.60 points, or 0.06 per cent, to 22,806.80. Market activity showed 1604 shares advancing, 646 declining, and 94 remaining unchanged.
In the pre-opening session, benchmark indices show mixed trading trends on Friday. The Sensex showed a gain of 110.75 points or 0.15 per cent, reaching 75,185.26, while the Nifty experienced a decline of 143.60 points or 0.63 per cent, settling at 22,677.80.
Reserve Bank Governor Shaktikanta Das is set to announce the next round of monetary policy on Friday, with expectations leaning towards maintaining the benchmark interest rates unchanged. The Reserve Bank of India has kept the key interest rate (repo) at 6.5 per cent since February 2023. Experts anticipate that the RBI will uphold the current interest rates, citing inflation as a continuing concern, even as the European Central Bank and Bank of Canada have commenced reductions in their respective key rates.
Background
Business News Live: Hello and welcome to ABP Live's Business LIVE blog. Please follow this space for all the breaking news and latest updates from the stock market, economy, and the corporate world.
In the previous trading session on Thursday, the two primary equity gauges, Sensex and Nifty, concluded higher for the second consecutive day amidst fluctuations, coinciding with Prime Minister Narendra Modi's imminent government formation for a third consecutive term. The BSE Sensex surged by 692 points, ending the day at 75,075, while the NSE Nifty50 settled at 22,821, marking an increase of 201 points.
The Reserve Bank Of India (RBI) is all set to announce the outcome of the Monetary Policy Committee (MPC) meeting on Friday. According to a Bloomberg report, the RBI is anticipated to maintain its benchmark interest rate at 6.5 per cent for the eighth consecutive meeting. Concerns over potential fiscal populism arising from post-election political developments are cited as a key factor. All 34 economists surveyed by Bloomberg predict that the central bank will uphold its current stance.
In addition, the central bank is expected to maintain its projection of 7 per cent GDP growth and an average inflation rate of 4.5 per cent for the fiscal year ending March 2025. Governor Das has signalled that the RBI will adjust its rate policy once inflation consistently meets the 4 per cent target. In April, the inflation rate stood at 4.83 per cent. With last fiscal year's growth exceeding 8 per cent, the RBI has considerable grounds to uphold higher rates.
Furthermore, according to a report released by CRISIL MI&A Research on Thursday, the price of a standard homemade vegetarian thali in May surged by 9 per cent year-on-year (YoY), while the non-vegetarian thali witnessed a 7 per cent decline compared to the previous year. The report highlights that the increase in the cost of the vegetarian thali was mainly propelled by substantial rises in the prices of tomato, potato, and onion by 39 per cent, 41 per cent, and 43 per cent, respectively, compared to the previous year.
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