INR sees choppy moves
The Indian rupee saw choppy moves in opening trades on Thursday as dollar is seen recovering, following a sharp slide in the previous session. Moreover, domestic shares look set to open largely unchanged as investors look ahead to the Reserve Bank of India's (RBI) monetary policy decision on June 6, with the central bank widely expected to cut interest rates by 25 basis points for the third consecutive time. Rupe is quoting flat at 85.85 per US dollar.Powered by Capital Market - Live News
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Economic Times
6 minutes ago
- Economic Times
Deepest RBI cut in five years will take deposit rates lower
The RBI's deeper than expected 50 basis points rate cut on Friday will hasten a fall in deposit rates as banks will readjust their liabilities to the current rate regime. Banks have already started reducing their deposits rates with some bans pre-empting Friday's cut with an immediate reduction in rates. Governor Sanjay Malhotra said deposit rates have been reduced on retail as well as wholesale by most banks by 40 basis points since the RBI cut its repo rate in February. 'The average reduction in deposit rates is 27 basis points. But there is a lag. On the asset side 45% of the loan book is linked on the external benchmarks which gets immediately transferred. But on the deposit side there is no such mechanism so there is a lag. Despite all this 27 basis points is already transferred on the deposit side,' Malhotra said. One basis point is 0.01 percentage point. In February and April RBI reduced the repo rate by 25 basis points each. The 50 basis point cut on Friday means that the benchmark rate has now been reduced by a cumulative 100 basis points this calendar year. Malhotra said ultimately the rate cuts will have an impact. But just like in the past two cycles the impact will happen with a lag of six to nine have already started to reduce rates in anticipation of the widely expected rate cut. Private sector banks ICICI and Axis both reduced their deposit rates effective June 6. ICICI for example reduced some bulk deposit rates. The bank had already cut its rate for retail deposits with a tenure of 18 months to 2 years by 20 basis points on May 17. Other large lenders State Bank of India, HDFC Bank, Punjab National Bank and Bank of Baroda had already reduced rates in mid to late May, in anticipation of the RBI cut, their websites show. 'For transmission to happen both sides of the balance sheet have to be adjusted. The quantum of the cuts will be decided when our asset liability committee meets but its fair to assume that rates are on the way down,' said Saloni Narayan, DMD, finance, sharp rate cut in the Covid years of 2020-21 had reduced bank deposit rates. Bankers said though it cannot be predicted how low rates will go this time, it is right to say that depositors will have to live with lower rates.'With repo at 5.5% and ample liquidity in the system, it is fair to assume overnight rates at 5.25% which means one year deposit rates cannot go above 6% it 6.25%. With the amount of money in the system, the cost of funds is likely to fall and customers will have to get used to a lower returns,' said Rajiv Anand, DMD, Axis Bank.
Indian Express
9 minutes ago
- Indian Express
Trump-Xi phone call, rare earths shortage looms, and 36 years of Tiananmen
It has been a week of important developments on all things China. On Wednesday (June 4), US President Donald Trump called Chinese President Xi Jinping 'VERY TOUGH, AND EXTREMELY HARD TO MAKE A DEAL WITH' in a social media post. Barely two days later, the leaders spoke to each other on a phone call. The direct communication matters amid the low in US-China ties, but more pressingly, in re-energising talks for a trade deal following the tariff escalation and climbdown. US Treasury Secretary Scott Bessent said last week that discussions were 'stalled', as we mentioned in our tracker, and a call could happen soon. It's also significant given the recent Chinese export controls on rare earth minerals, which are crucial to global industries ranging from automobiles to defence. While the restrictions were announced in April, the effects are finally being felt, as companies' stocks are petering out. Wednesday also marked the 36th anniversary of the Tiananmen Square massacre, when China's People's Liberation Army (PLA) cracked down on student protestors in Beijing. It is seen as a watershed moment in the story of modern China. Here is a closer look at these developments: To recap, the countries' official representatives met in Geneva in early May, agreeing to reduce the tariffs they imposed on each other and to future trade talks. As has been the case of late with the US and China, the fragile truce soon came under threat. Trump's Wednesday post said, 'I like President Xi of China, always have, and always will, but he is VERY TOUGH, AND EXTREMELY HARD TO MAKE A DEAL WITH.' Both sides also accused each other of violating the Geneva talks. A Trump-Xi call, and even a possible meeting, has been speculated since they last spoke in January. This was, however, in the relatively simpler, pre-tariff era. Trump wrote on Truth Social that the 'very good phone call' only included trade discussions, lasting for an hour and a half. Their trade representatives will meet soon. Xi also extended an invitation for Trump to visit China, which Trump reciprocated. On the Chinese side, the Foreign Affairs Ministry's readout said the US had initiated the talks in Geneva. 'The U.S. side should acknowledge the progress already made, and remove the negative measures taken against China,' it said. Trump spoke about the importance of their ties and said he 'wants the Chinese economy to do very well,' the document stated. UPSHOT: The US-China relationship has evolved at a fast-moving pace in Trump's second term. China has been unwilling to back down amid the US imposing tariffs, restricting immigration and blaming China for the trade deficit in their economic ties. In official statements, China has emphasised 'win-win cooperation' and avoiding zero-sum games. But neither China nor the US can be seen backing down unilaterally, with strongman leaders at the helm. At the same time, the interdependence of the world's two largest economies means neither can maintain the status quo of trade roadblocks. While a phone call undoubtedly hints at intent for resolution, its details are unknown. Notably, Trump last visited China in 2017, and Xi also met Trump in Florida that year. Trump's critics accused him of not challenging Xi's policies while in China. It also didn't do much for the subsequent tariff war that Trump launched some two months later. Trump mentioned rare earth minerals in his post after the call with Xi, saying, 'There should no longer be any questions respecting the complexity of Rare Earth products.' What that means for their availability, however, is unclear. Rare earths are 17 elements on the periodic table, including promethium (Pm), samarium (Sm), ytterbium (Yb), and yttrium (Y). All have similar chemical properties and appear silver-coloured. They are not 'rare' in terms of their abundance, but are difficult to process once extracted. China has maintained a monopoly on their processing since the 1990s. It also deemed them 'protected and strategic mineral' resources, and has kept its global supply dynamic based on its requirements. Rare earths' unique magnetic and optical properties lend them to a multiplicity of uses, including making phosphors, or substances that emit luminescence, for digital displays and screens. Increasingly, REEs are being used to build powerful magnets, with uses in automobile manufacturing — power steering, electric windows, power seats, and audio speakers. UPSHOT: China's decision to restrict exports was seen in the context of its trade war with the US, but its effects are now being felt globally. Reuters recently reported that some European auto parts plants have suspended output, and Mercedes-Benz is considering ways to protect against shortages. And, according to the Financial Times, EU businesses are lobbying the Chinese government to fast-track approval of rare earth export licences for 'reliable' European companies. Suzuki Motors suspending the production of its Swift cars in India is also being linked to the rare earths magnets. In an official statement on Wednesday, US Secretary of State Marco Rubio commemorated the Tiananmen Square protests of 1989. The statement spoke of 'the bravery of the Chinese people who were killed as they tried to exercise their fundamental freedoms,' adding that freedom, democracy, and self-rule are 'not just American principles.' Chinese foreign ministry spokesperson Lin Jian said Rubio's 'erroneous statements… maliciously distort historical facts… and seriously interfere in China's internal affairs.' Domestically, the Chinese government heavily censors commemorations of the day. UPSHOT: China is a one-party authoritarian state, with one leader who has increasingly centralised power in recent years. At the same time, it is also true that factions of hardliners and comparatively liberal leaders have existed in the Communist Party since its inception in the early 20th century, and shaped its history. The Tiananmen protests led to hardliners successfully steering the party in a more conservative direction. One major driving factor for the agitations was the 1978 economic reforms unleashed by reformist leader Deng Xiaoping, which led to a greater appetite for broader reforms of the state. Another grievance was corruption, as several contracts in the newly liberalised economy were being awarded to party leaders or the people they favoured. The crackdown on the protests resulted in a more repressive state, with little tolerance for criticism or dissent. The South China Morning Post reported that Hong Kong police officers arrested two people and took away 10 others on Wednesday, as some residents brought flowers and candles to a spot for commemoration. The state media website People's Daily reported that the government has launched an online public consultation for its next five-year plan for national economic and social development. The 15th Five-Year Plan (2026-30) will be the next in the series of key strategic documents. State media agency Xinhua reported that the first Five-Year Plan (1953-57) emphasised heavy industry and industrialisation, the seventh Five-Year Plan (1986-1990) aimed to resolve basic subsistence needs, and the 14th Five-Year Plan (2021-25), launched after 'China achieved the goal of building a moderately prosperous society in all respects, focused on high-quality development.' UPSHOT: The framework borrows from the Soviet model of a planned economy, similar to how India did through the Planning Commission from 1950 to 2014. The Chinese plans previously included GDP targets, but have, of late, dispensed with them. Five-year plans indicate the government's future strategy and its own assessment of the economy. For instance, the 14th plan was formulated during the Covid-19 pandemic, and therefore stressed supply chain resilience, getting the middle class to increase its consumption, and boosting domestic demand. Rishika Singh is a Senior sub-editor at the Explained Desk of The Indian Express. She enjoys writing on issues related to international relations, and in particular, likes to follow analyses of news from China. Additionally, she writes on developments related to politics and culture in India. ... Read More
Hans India
10 minutes ago
- Hans India
Maruti Suzuki Grand Vitara becomes the fastest SUV to clock 3 Lakh sales in its segment
Maruti Suzuki India Limited (MSIL), the country's leading passenger vehicle manufacturer, has surpassed a cumulative sales milestone of 3 lakh units for the Grand Vitara. Setting a new benchmark for mid-size SUVs in India, Maruti Suzuki has achieved this landmark milestone in a record time* of just 32 months. With its latest achievement, the Grand Vitara continues to reinforce its position as a Tech SUV that resonates strongly with the evolving aspirations of modern Indian consumers. A multi-product offering, the Grand Vitara entices customers with the availability of Strong Hybrid powertrain and Suzuki ALLGRIP SELECT 4x4 with 6AT. Commenting on this milestone, Partho Banerjee, Senior Executive Officer, Marketing and Sales, Maruti Suzuki India Limited, said, 'We thank our 3 lakh strong Grand Vitara family for their trust in Maruti Suzuki. The Grand Vitara has been a catalyst in strengthening Maruti Suzuki's position in the mid-SUV market, and achieving this monumental milestone in such a short period of time is a new benchmark for the industry. Designed for today's urban, tech-savvy, and progressive individuals, the Grand Vitara masterfully combines bold aesthetics, advanced technology, and a comprehensive suite of safety features, underscoring its positioning as a Tech SUV.' He further added, 'Celebrating the success of the Grand Vitara, we are proud to introduce a new campaign 'Driven by Tech'. The campaign vividly communicates our flagship SUV's versatility, and its myriad capabilities which allow it to appeal to diverse personalities, while seamlessly complementing the evolving aspirations of customers.' 'Driven by Tech', is an impactful campaign that showcases automotive technology as an extension of a driver's personality, through a fast-paced film that brings two old friends together. One is a tech-entrepreneur driven by the power of Strong Hybrid technology; the other, a fearless businesswoman who overcomes obstacles with our ALLGRIP SELECT 4x4. From urban landscapes to the daunting frontiers that exist beyond cityscapes, the film takes viewers through two separate journeys, connected by one versatile Tech SUV. Click to watch the TVC here - v=vqWA-eZdlcs Engineered to dominate every road, the Maruti Suzuki Grand Vitara has strongly resonated with its customers on account of its exciting performance, distinctive style and commanding presence. Further enhancing the ownership experience, Customers now have greater choice while opting for a sunroof in the recently updated 2025 Grand Vitara. The Zeta and Alpha variants of the new Grand Vitara are available in optional Zeta (O), Alpha (O), Zeta+ (O) and Alpha+ (O) variants with a panoramic sunroof. The Grand Vitara also boasts of a host of premium features such as R17 precision cut alloy wheels, 6-speed AT with Electronic Parking Brake, Auto Purify with PM 2.5 Display, 8-way Driver Powered Seat, Ventilated Seats, a 22.86cm (9') Smart Play Pro+ entertainment system with wireless connectivity, Suzuki Connect, 360 View Camera, Head Up Display, Wireless Charging Dock, Premium Sound System by Clarion® and more, making this mid-size SUV the ideal choice for every occasion. The new 2025 Grand Vitara is equipped with a comprehensive suite of safety features that are standard across all variants. These include 6 airbags, 3-point ELR seat belts for all seats, and ISOFIX child seat restraint system, Electronic Stability Program^ (ESP®) with Hill Hold Assist, Front and Rear Disc Brakes with Anti-lock Braking System (ABS) and Electronic Brakeforce Distribution (EBD). A blend of innovation, performance, and safety continues to make the Grand Vitara a standout choice for today's tech-savvy and safety-conscious SUV buyers.
