The RBI has projected real GDP growth of 7.8 per cent for financial 2022-23.
A new generation of historians are bringing the subject out of the shadow of Marx and Nehru, fulfilling its role of restoring civilisational pride among Indians.
The BJP, with its insistence on the purity of Hindu Rashtra, would sadly reduce the soaring generosity of their founding vision to the petty bigotry of majoritarian chauvinism.
Historiography under previous governments can, and should, be contested. But history that’s being rewritten under the present government is not merely to eulogise some leaders, but also, and more worryingly, to condemn several chapters of the past.
The Reserve Bank of India's Monetary Policy Committee kept the repo rate unchanged at 4 per cent and maintained its accommodative stance for as long as possible to revive growth, RBI governor Shaktikanta Das said. Governor Das said that the 6-member (MPC) unanimously voted to keep the rates unchanged at record low and voted in ratio of 5:1 to maintain its accommodative stance. The RBI has projected real GDP growth of 7.8 per cent for financial 2022-23.
RBI repo rate has a direct influence on the home loan interest rate. When it lowers the repo rate, the banks’ cost of borrowing comes down and banks can pass on this benefit to customers.
The Sensex rose as much as 594 points and the Nifty 50 index touched an intraday high of 17,639.45. Rally in today's session was led by buying interest in index heavyweights like Infosys, HDFC Bank, HDFC, Kotak Mahindra Bank, State Bank of India and Tata Steel. The Sensex surged 460 points to close at 58,926 and Nifty 50 index climbed 142 points to close at 17,606.
The RBI has proposed to extend the term-liquidity facility of Rs 50,000 crore offered to emergency health services by three months till June 30, 2022.
"RBI has maintained an accommodative stance and kept the repo rates unchanged. However, as inflation is under control, RBI could have thought to lower the rates by 25 to 50 basis points. In the last 2 years, RBI has been maintaining an accommodative stance and slashed rates, which has been instrumental in setting the stage for higher economic growth. RBI should take a cue from the past actions and continue with further measures to support spending and spurred growth," says Siddharth Maurya, Market Expert (Real estate and fund management).
"The RBI objective must be attached to the growth as the past two years were significantly stressful for the country. The RBI policy review might be raising the reverse repo rate as per the suggestions of the monetary policy committee, however, the important part is to keep the price variation within the check for the consumers. The expectation is around 15 to 20 basis points. But overall it would be the RBI way of handling the inflation limits is to be seen rather than the actual conditions prevailing in the country," says Atul Goel, MD, Goel Ganga Group & President (Elect.), NAREDCO Pune.
Brickwork Ratings says, "In line with BWR’s expectations, RBI continued its dovish stance and remained accommodative by reiterating that despite the economic recovery and aggregate demand gaining traction and improving inflation outlook, continued policy support is warranted to support domestic growth, which is the highest priority. Continuing with its calibrated liquidity management policy to maintain financial stability, RBI emphasized that VRR and VRRR would be the main tools for liquidity adjustment indicating gradual policy normalization on the liquidity front. While stating that headline inflation will peak in Q4 of the current fiscal, RBI maintained its inflation projections at 5.30 per cent for FY22 and a dovish forecast at around 4.50 per cent thereafter. Enhancement of cap and multiple-use under e-RUPI prepaid digital voucher, new credit default swap (CDS) guidelines (to be announced today) and extension of on tap liquidity for emergency health services and contact intensive sectors till June 30, 2022, are welcome steps. Hiking of limit under Voluntary Retention Route (VRR) scheme from Rs. 1.5 Lakh Crore. to Rs. 2.5 Lakh Crore. will provide additional sources of capital for domestic debt markets and government securities. Increase in NACH mandate from Rs. 1 Crore to Rs. 3 Crore. for TReDS related settlements are expected to improve the receivables financing and overall liquidity position of the MSMEs."
Parth Nyati, Founder, Tradingo says, "Contrary to many central banks, RBI acts dovish and kept interest rates unchanged with an accommodative stance. There were expectations that RBI may hike the reverse repo rate and may change its stance to neutral from accommodative in tandem with hawkish global central banks amid rising inflation but RBI continued with its existing stance. RBI believes that inflation will peak out soon and there is a need for continuous support to the economy. Generally, it is considered positive for the market but it will be important to see how the market will read it because there could be a risk that RBI will remain behind the curve that may cause inflation in the future however the overall structure looks bullish for Indian market after a recent correction. Rate-sensitive sectors like infra, real estate, auto, and financial may continue to outperform."
The gauge of banking shares on the National Stock Exchange - Nifty Bank index surged 431 points to trade above its important psychological level of 39,000
Here are top gainers from banking space:
The Sensex rose 134 points and Nifty reclaimed its important 17,500 after the RBI kept repo rate unchanged at 4 per cent and maintained its accommodative stance for as long as possible to revive growth.
Gauge of banking shares on the NSE - Nifty Bank index jumped 0.5 per cent to 38,802 after RBI's policy announcement.
The RBI has projected real GDP growth at 7.8 per cent for FY 2022-23. The GDP growth for Q1 of FY2022-23 is expected at 17.2 per cent, Q2 is expected at 7 per cent, Q3 is expected at 4.3 per cent and Q4 is expected at 4.5 per cent.
The MPC is of the view that continued policy support is warranted for durable and long term recovery, says Shaktikanta Das.
The Monetary Policy Committee has unanimously voted to keep the repo rate unchanged and has maintained the Accommodative Stance. RBI has kept the repo rate unchanged at 4 per cent, the reverse repo rate at 3.35 per cent, marginal standing facility (MSF) and bank rate at 4.25 per cent.
"Pandemic holds the world's economy hostage once again. India poised to grow at the fastest pace among major global economies," says Shaktikanta Das
The interest rate sensitive banking, financial services, auto and realty indices were trading lower ahead of the policy decision.
The Indian equity benchmarks erased gains ahead of the Reserve Bank of India's Monetary Policy Decision. ONGC, Power Grid, Tata Steel and Infosys were amongst the top gainers. Nifty 50 index declined 17 points to 17,446.
Finance Minister Nirmala Sitharaman will meet the RBI Board on February 14 to discuss the announcements made in Union Budget 2022 and to prepare a roadmap for the economic activities for FY22-23. Notably, it is customary for the finance minister to meet the RBI board after the budget announcements. The government has gone bullish regarding Capital Expenditure (Capex) in the budget this year, increasing it by 35.4 per cent.
Ahead of the RBI Monetary Policy Decision Meeting, analysts are of the view that the RBI is likely to change the monetary policy from 'Accommodative' to 'Neutral.' It is also expected that the monetary panel will increase the reverse repo rate by at least 25 basis points. For the past two years, RBI's monetary policy stance has been 'Accommodative' in order to help the banking system to recover from woes of Covid-19 pandemic.
Sensex on Thursday surged 300 points opening at 58,662 ahead of the RBI Monetary Policy Decision Meeting that will take place at 10:00 am.
The Indian equity benchmarks are set to open higher as indicated by the Nifty futures traded on Singapore Exchange ahead of Reserve Bank of India's monetary policy decision due later in the day. The Nifty futures on Singapore Exchange also known as SGX Nifty futures rose 28 points or 0.16 per cent to 17,512 indicating a start above 17,500 for the Nifty 50 index.