RBI Monetary Policy Committee to announce interest rate decision today. Check out the latest news, developments, and analysis!
#RBIPolicy | India has witnessed portfolio outflows of $13.3 bn in FY23 so far (till August 3). Debt service ratio declined from 8% in March 2021 to 5.2% in March 2022, says @RBI Governor, @DasShaktikanta #RBI #CreditPolicy #MPC pic.twitter.com/5jv4TdeBI9— CNBC-TV18 (@CNBCTV18Live) August 5, 2022
Easy Trip in pact with SpiceJet to sell air tickets in Thailand:
RBI MPC hikes repo rate by 50 bps:
India’s rate-setting panel on Friday hiked the key lending rate, the repo rate, by 50 basis points (bps), taking the policy rate back to the late-2019 levels. One bps is one-hundredth of a percentage point. With the latest hike from the six-member Monetary Policy Committee (MPC), the repo rate now stands at 5.4 percent. Repo is the rate at which the central bank lends short-term funds to banks. Changes in this rate typically gets transmitted to the broader banking system.
Most economists had predicted a 25-50 bps rate hike in the backdrop of a consistently high retail inflation that is hurting the common man. Already, the MPC had hiked the repo rate by 90 bps so far in this rate cycle.
Market update at 10 AM: Benchmark indices continues trading in the green with Sensex up 255.48 points or 0.44% at 58554.28, and the Nifty adding 69.50 points or 0.40% at 17451.50.
Zomato board rejects its EY valuation deriving from Blinkit deal:
Zomato’s board has decided to keep the fair value of its shares at Rs 70.76 apiece for the all-stock deal to acquire quick commerce company Blinkit despite a valuation report by EY that pegs the foodtech company’s shares at a lower price.
According to a BSE filing by Zomato, accounting major EY had first reached upon the price of Rs 70.76 in a report on June 24, the date on which the acquisition was announced.
However, after the BSE and NSE had asked for a fresh evaluation based on other methods, the accounting firm came up with a lower price for Zomato shares on July 20. The company has not disclosed what the lower price was.
Ravindra Rao, VP- Head Commodity Research at Kotak Securities:
COMEX gold trades little changed near $1805/oz supported by weaker US dollar and lower bond yields. Gold has also benefitted from safe haven buying amid increased tensions between US and China over Taiwan and increasing growth concerns. However, weighing on price is hawkish comments from Fed officials, concerns about consumer demand in India and China and continuing ETF outflows. Gold has moved close to $1800/oz level after a brief correction indicating positive momentum however we may see further gains only if US jobs report disappoints and further pressurizes US dollar.
#OnCNBCTV18 | Fed speakers are telling us that rates will remain high for longer. Indian market has not fallen as much as other markets, says Samir Arora (@iamsamirarora) of Helios Capital pic.twitter.com/g1BDSIH8m8— CNBC-TV18 (@CNBCTV18Live) August 5, 2022
Force Motors July auto sales: Total sales up 26.3% at 2,299 units YoY
Crompton Greaves Consumer large trade: 216.4 lakh shares (3.44% equity) worth Rs 808.6 crore change hands at Rs 373 per share
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services:
RBI rate action today is unlikely to impact markets. The most likely scenario of a 30 to 35 bp rate hike is already known and discounted by the market . Market will be looking forward to the RBI’s commentary on inflation, GDP growth for FY 23 and other macros like CAD.
The momentum in the market now is influenced by global cues and strong FII buying which has crossed Rs 5300 crore so far in August. The decline in Brent crude to $94 is positive for India’s macros and the dip in dollar index to below 106 again augur well for capital flows to India. FII buying happening in sectors like capital goods, FMCG, construction and power is likely to impart resilience to these segments.