Latest news with #SanjayMalhotra-led
Mint
6 days ago
- Business
- Mint
RBI Policy Impact: Sensex, Nifty 50 decline as RBI maintains repo rate at 5.5%; rate-sensitive sectors mixed
Governor Sanjay Malhotra-led RBI Monetary Policy Committee (MPC) announced to keep the repo rates unchanged at 5.5 per cent. Following the announcement, the BSE Sensex fell around 165 points to day' low of 80,544.95 levels, while the Nifty50 was down 70 points to day's low of 24,579.7 levels. The Reserve Bank of India's MPC voted unanimously to keep the benchmark policy rate unchanged and maintain the monetary policy stance at 'Neutral', RBI Governor Sanjay Malhotra said in the post-policy address. The decision was widely in line with market expectations, following a 50 basis point rate cut in the previous meeting, which had taken many by surprise. Governor Malhotra reiterated that the shift to a 'neutral' stance reflects the central bank's flexibility to act in either direction based on incoming data. He noted that while the domestic economy is largely tracking the RBI's assessment, some high-frequency indicators in May and June have shown mixed trends. Despite the short-term variability, Malhotra expressed confidence in India's economic trajectory. 'Over the medium term, the Indian economy holds bright prospects in the changing world order, drawing on its inherent strength, robust fundamentals and comfortable buffers,' he said. The RBI Governor stated that retail inflation is expected to rise in the final quarter of FY2026, aligning with analyst forecasts. However, core inflation is projected to remain stable around the 4 percent mark. Reflecting signs of easing price pressures, the RBI has revised its Consumer Price Index (CPI) inflation projections downward for most of FY26. The headline inflation estimate for the full fiscal year has been cut to 3.1 percent from the earlier 3.7 percent. RBI also retained its real GDP growth forecast for the current financial year at 6.5 percent. Broader markets underperformed benchmark indices with the Nifty Midcap and Nifty Smallcap indices down over ap ercent each. Among stocks, Trent, Asian Paints, Adani Ports, Kotak Bank and Coal India were among the top gainers on the Nifty, while Eternal, Infosys, Wipro, Dr Reddy's, and Cipla were among the top laggards. Rate sensitive sectors were mixed post the RBI announcement with the Nifty Bank and Nifty Financial Services trading flat while Nifty Auto and Nifty Realty down 0.65 percent and 1.75 percent. In the Nifty Bank index, Kotak Bank, ICICI Bank, SBI, Bank of Baroda and HDFC Bank were in the green while the remaining constituents were negative. IndusInd Bank fell the most, down 1 percent followed by IDFC First Bank and AU Small Finance Bank. Meanwhile, in the Auto index, Bosch was the top dragger, down 4.6 percent followed by Balkrishna Industries, down over 3 percent and Motherson down over 1 percent. Hero Moto, Exide Industries, TI India, TVS Motor, and Bharat Forge also shed over half a percent each. However, Maruti and Eicher Motors were in the green. Finally in the Realty segment, all constituents were in the red. Prestige was the top loser, down 2.5 percent followed by Phoenix, DLF, Lodha, Anant Raj, Brigade, and Godrej Properties, down over 1 percent each. 'The RBI's decision to maintain the current policy rate reflects its continued focus on inflation management and financial stability. From a real estate perspective, this stability supports sustained buyer confidence, especially in the mid‐ to premium housing segments where purchase intent remains strong. While consumers were hoping for a rate cut to ease home loan EMIs, the unchanged stance ensures affordability doesn't worsen — thereby keeping demand for residential real estate intact. For now, policy continuity bodes well for both homebuyers and developers by providing a predictable environment for decision‐making and long‐term planning, said Sudhir Pai, CEO, Magicbricks. Among other sectors, Nifty IT and Nifty Pharma lost over 1 percent each while Nifty FMCG and Nifty Metal shed around 0.4 percent each. Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
Indian Express
6 days ago
- Business
- Indian Express
RBI Monetary Policy Meet LIVE: Repo rate likely to remain unchanged amid Trump tariffs uncertainty
RBI Repo Rate Cut, RBI Monetary Policy Meeting August 2025 Today Live Updates: The Reserve Bank of India's (RBI) six-member Monetary Policy Committee (MPC) is expected to announce its monetary policy — the third bi-monthly one for FY26 — today. Experts are of the view that the RBI Governor Sanjay Malhotra-led committee may keep the repo rate unchanged after slashing it by a bigger-than-expected 50 basis points (bps) in June. With a total cut of 100 bps between February and June this year, the repo rate currently stands at 5.5 per cent. FY26 inflation projection: The August policy announcement on Tuesday comes after the MPC meeting from August 4 to 6. It was held amid the ongoing rising uncertainties around trade tariffs triggered by US President Donald Trump as well as moderation in headline inflation. If it continues to frontload cuts, a 25 bps cut is not ruled out, say economists including State Bank of India's group chief economic advisor Soumya Kanti Ghosh. The MPC is also expected to revise inflation projection for FY26 downward. Further, the RBI may retain its forecast for real gross domestic product (GDP) growth for the current year. © IE Online Media Services Pvt Ltd
Mint
6 days ago
- Business
- Mint
Nifty 50, Sensex today: What to expect from Indian stock market in trade on August 6 ahead of RBI policy
The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to see a tepid opening on Wednesday, tracking weak cues from global markets. The trends on Gift Nifty also indicate a muted start for the Indian benchmark index. The Gift Nifty was trading around 24,688 level, a discount of nearly 20 points from the Nifty futures' previous close. Investors will focus on the Reserve Bank of India's (RBI) monetary policy decision later today. In the August RBI policy, Governor Sanjay Malhotra-led MPC is widely expected to hold repo rates unchanged. On Tuesday, the domestic equity market ended lower, with the benchmark Nifty 50 closing below 24,700 level. The Sensex dropped 308.47 points, or 0.38%, to close at 80,710.25, while the Nifty 50 settled 73.20 points, or 0.30%, lower at 24,649.55. Here's what to expect from Sensex, Nifty 50 and Bank Nifty today: Sensex is currently exhibiting non-directional activity, with traders possibly waiting for either side to break out. 'For day traders, the level of 81,000 will act as important resistance zones. Above these levels, a pullback could continue up to 81,500 - 81,600. On the downside, 80,500 - 80,300 will serve as key support zones. Below these levels, Sensex could slip further to 80,000 - 79,700,' said Shrikant Chouhan, Head Equity Research, Kotak Securities. Given the current market texture of non-directional movement, he believes level-based trading would be the ideal strategy for day traders. In the options segment, the highest Nifty Call open interest (OI) is seen at the 24,800 and 25,000 strikes — signaling key resistance levels. Meanwhile, the highest Put OI lies at the 24,600 strike, suggesting it to be an important support zone. 'The combined technical and derivatives setup suggests that as long as key support levels hold, there is a potential for upward continuation. Traders are advised to remain cautiously optimistic, use dips to accumulate quality names, and manage risk with appropriate stop-loss strategies,' said Mandar Bhojane, Senior Technical & Derivative Analyst - Research at Choice Equity Broking. Nifty 50 shifted into a range bound action in the mid part and showed volatility towards the end, forming a high wave doji candlestick pattern, indicating both indecision and volatility in the market. 'A reasonable negative candle was formed on the daily chart with minor lower shadow, which indicates erosion of some of the gains of Monday. After a one day bounce back from near the crucial support of 24,500 levels, Nifty 50 is expected to revisit the said support in the short term,' said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities. According to him, the near-term down trend of Nifty 50 remains intact and the market is expected to slide down towards the 24,500 - 24,400 levels in the next few sessions. 'However, today's RBI's mid quarter policy outcome is expected to show clear directions for the market. Immediate resistance is placed at 24,800 levels,' Shetti said. Sudeep Shah, Head - Technical and Derivatives Research at SBI Securities said that the Nifty 50 has been moving in a narrow range and formed the NR3 pattern on the daily chart. 'Nifty 50 index has been holding on to its 100 EMA support, which is placed at 24,596, since the last three sessions. The daily RSI has been hovering around the 40 mark while the ADX, a key trend strength indicator, has been moving up quietly, settling marginally above the 25 mark, indicating early signs of momentum shifting in the favor of bears. Post the narrow range pattern formation, the price likely experiences a significant move in either direction, as these patterns indicate periods of low volatility and consolidation,' said Shah. Key support for Nifty 50 lies at 24,500 – 24,550; breach of this zone could drag the index towards 24,350, while immediate resistance is seen at 25,000 – 25,050, he added. VLA Ambala, Co-Founder of Stock Market Today noted that the Nifty 50 formed a high wave doji candlestick pattern, indicating both indecision and volatility in the market. 'We can expect Nifty 50 to gain support between 24,600 and 24,520, and meet resistance near 24,940 and 24,950 in today's trading session,' Ambala said. Bank Nifty index fell 259.10 points, or 0.47%, to end at 55,360.25 on Tuesday, forming a red candle on the daily chart. 'Bank Nifty breached the 75-Day Exponential Moving Average (75-DEMA), placed around 55,470, and formed a red candle on the daily chart, suggesting weakness. On the downside, 55,150 – 55,000 will act as support, while on the upside, the 21-DEMA is placed near 56,310 will serve as immediate resistance,' said Hrishikesh Yedve, AVP Technical and Derivative Research, Asit C. Mehta Investment Intermediates Ltd. Hence, he advises traders to closely watch these levels for potential trading opportunities. Mandar Bhojane highlighted that the Bank Nifty index is still trading below its recent range breakout zone, indicating lack of momentum. 'If the Bank Nifty index remains below 55,115, it may drift further toward 54,900, where the 100 EMA is placed. On the other hand, 56,000 will act as a crucial resistance level — a decisive close above this could spark fresh buying interest,' Bhojane said. Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
United News of India
06-06-2025
- Business
- United News of India
RBI cuts repo rate by 50 bps to 5.50 pc
Mumbai, June 6 (UNI) The Reserve Bank of India (RBI) on Friday in its second bi-monthly monetary policy of FY26. cut the repo rate by 50 basis points (bps) to 5.50 pc from 6.00 pc earlier. This is the central bank's third consecutive repo rate cut. RBI Governor Sanjay Malhotra-led Monetary Policy led committee decided to cut the Cash Reserve Ratio (CRR) by 100 basis points (bps) to 3% from 4% earlier releasing Rs 2.5 lakh crore of lendable resources to the banking system. The MPC also decided to change the policy stance to 'Neutral' from 'Accommodative' in a bid to support economic growth. This RBI's rate cut decision is expected to stimulate borrowing and investment, leading to a higher growth rate. The policy panel retained growth estimate at 6.5 per cent but projected a lower inflation of 3.7 per cent in the current fiscal. Malhotra asserted that the global backdrop remains fragile, and trade projections have been revised downwards, but the Indian economy is progressing well despite the global uncertainties. "India's strength comes from the strong balance sheets of the five major sectors. The Indian economy offers immense opportunities to local and foreign investors. We are already growing at a fast rate. We aspire to grow faster," he said. Inflation has softened significantly, the RBI Governor said, and the near-term and medium-term outlook exudes confidence. Food inflation outlook remains soft, and core inflation is expected to remain benign. The RBI also projected that retail inflation for the current financial year would be 3.7% against its April projection of 4%. Government data shows it fell to 3.16% in April from 3.34% in March, remaining within the RBI's comfort level. The various economic indicators remain strong, with the RBI Governor pointing to a gradual rise in discretionary spending and healthy private consumption. Industrial activity is gaining gradually while the services sector is likely to maintain momentum, he said. Rural demand remains steady while urban demand is improving, he added. The RBI kept the Gross Domestic Product (GDP) growth projection unchanged at 6.5% in the current financial year. The quarterly projections are: 2.9% (April-June), 3.4% (July-September), 3.9% (October-December), and 4.4% (January-March). The Central bank also reduced the cash reserve ratio (CRR) by 100 bps and said it will release Rs 2.5 lakh crore of bank funds. CRR refers to the percentage of total deposits that banks must hold in liquid form with the RBI. India continues to be an attractive investment destination, assured Mr Malhotra, adding that the forex reserves stand at $691 billion, which is sufficient to fund more than 11 months of goods imports. UNI JS PRS
Time of India
06-06-2025
- Business
- Time of India
RBI MPC Meeting Live Updates: Will RBI governor Sanjay Malhotra cut repo rate, bring cheer for loan borrowers?
RBI MPC Meeting Live Updates: RBI governor Sanjay Malhotra-led Monetary Policy Committee (MPC) will announce its decision on repo rate, liquidity conditions, GDP growth outlook and CPI inflation trajectory at 10:00 AM today. Experts widely expect the RBI-led MPC to cut repo rate by 25 basis points from 6% to 5.75%. Some experts are even expecting a 50 basis points cut from the central bank. A repo rate cut would eventually mean lower EMIs for loan borrowers. RBI has made it clear that going forward the central bank's MPC will either cut repo rate or maintain status quo to support India's GDP growth. RBI's policy comes at a time when the global economy faces increased uncertainty due to US President Donald Trump's reciprocal tariffs. In the last policy RBI governor Sanjay Malhotra had warned of possible global economic turmoil arising due to tariff wars. Track TOI's live blog for latest from RBI policy MPC meet outcome today and know what the RBI governor said about the economy:
