RBI Monetary Policy LIVE Updates: Watch Governor Shaktikanta Das annouce the MPC’s decision here
Market LIVE Updates: Indices trade flat ahead of MPC meeting outcome; Power Grid, ONGC top gainers
Indian indices opened on positive note on February 10 with Nifty above 1750 ahead of RBI policy outcome. At 09:16 IST, the Sensex was up 201.82 points or 0.35% at 58667.79, and the Nifty was up 61.90 points or 0.35% at 17525.70. About 1274 shares have advanced, 678 shares declined, and 98 shares are unchanged.
ONGC, Power Grid Corp, Infosys, Tata Motors and UPL were among major gainers on the Nifty, while losers were BPCL, Asian Paints, ICICI Bank, Coal India and ITC.
Follow our Market LIVE Blog here
RBI Monetary Policy LIVE Updates: Shruti Aggarwal, co-founder, Stashfin
On her expectations from the MPC, Shruti Aggarwal, co-founder, Stashfin, said India’s GDP growth, which is estimated at 9.2 per cent for 2021-22 will be one of the fastest globally. To maintain and achieve this rate of growth, it’ll be challenging for the government to balance upward inflation as well as the risks associated with uncertainty around COVID and oil prices. “With COVID appearing to abate, an increase in demand can be forecast. A hike in interest rates that keeps inflation around 6 per cent should help in driving liquidity. A clear strategy on inflation and liquidity should further lead to increase in investments. We are optimistic on the economy growth,” said Aggarwal.
Will RBI enhance limits for international mutual funds in today’s monetary policy announcement?
Due to the limits, mutual funds are unable to invest in US tech stocks, which are seeing sharp price correction.
RBI Monetary Policy LIVE Updates: Shanti Ekambaram, Group President, Consumer Banking, Kotak Mahindra Bank
Expectations – Shanti Ekambaram, Group President, Consumer Banking, Kotak Mahindra Bank, said amidst global inflation pressures, tightening monetary policies by global central banks, high oil prices, domestic inflation, and the sharp rise in domestic yields, the MPC will have a tight rope-walk as they discuss the monetary policy stance and interest rates in the coming week. “Given that the overnight call rate is closer to 4 per cent, we expect the RBI to change the reverse repo rate by up to 25 bps or make repo the operative rate. While a repo rate hike is not expected, it is possible that the MPC might change its stance to neutral from accommodative,” Ekambaram said.
RBI Monetary Policy LIVE Updates: As long as currency is behaving, RBI won’t be under huge pressure to ease aggressively: Jefferies’ Chris Wood
The Reserve Bank of India (RBI) needs to raise interest rates this year, but the rate hike is not the prime focus, Christopher Wood, global head of equity strategy at Jefferies, told CNBC TV-18 in an exclusive interview. ”The prime focus of markets is that as long as the currency is behaving, the RBI won’t be under huge pressure to ease aggressively,” said Wood.
On the RBI being behind the curve, Wood said, ”If you are being very conservative, then you could say that the RBI is a little behind the curve, but I think the RBI is more dovish than the predecessor.”
However, he added that the RBI is not as dovish as the US Federal Reserve, Bank of England, and the ECB. ”In the context of that relative dovishness and high oil price, what’s encouraging is that the Indian currency has so far, been relatively resilient,” said Wood.
He also noted that it is not just about the rate hikes in the US as what the Fed does on the balance sheet is just as important for the markets.
”China is in a different cycle from the rest of the world. It has begun incremental easing in the last two months and that’s a positive backdrop for the emerging markets,” added Wood. Read more here.
RBI Monetary Policy LIVE Updates: Will RBI Hike Rates Post Feb MPC Meet & How Could Markets React?
RBI’s Monetary Policy Meet will conclude on Feb 10. Ahead of the verdict, Karunya Rao chats with Saugata Bhattacharya, Chief Economist of Axis Bank, about what to expect from RBI Governor’s…
RBI Monetary Policy LIVE Updates: Daily Voice | Shiv Chanani of Elara Securities expects MPC to hold policy rates
While imported inflation remains a concern, high crude oil prices, if sustained, will accelerate the energy transition that the world is currently witnessing, says the Head of Research at Elara Securities India
Crude oil prices have hit a seven-year high of $94 a barrel. Shiv Chanani, Head of Research at Elara Securities India, says the current movement in oil prices can be attributed to a combination of factors like growth recovery as well as geo-political issues. “Historically, geo-political premium has not lasted for an elongated period.”
On the Monetary Policy Committee (MPC) meeting scheduled to be held between February 8-10, he expects the MPC to remain growth supportive and maintain its accommodative stance. “Even though imported inflation (such as high crude oil prices) remains a concern, we expect the MPC to hold on to policy rates,” says Chanani, who has over 20 years of experience in Equity Research and Fund Management. Read more here.
RBI Monetary Policy LIVE Updates: Madan Sabnavis, Chief Economist, Bank of Baroda
Madan Sabnavis, Chief Economist, Bank of Baroda, said given the assurance on growth as per the budget and the possibility of inflation rising mainly due to crude oil, “we expect the RBI to start the process of normalisation by increasing the reverse repo rate by 25 bps”. There will be no change in the repo rate this time even though a 50 basis points hike is expected next year, Sabnavis said adding there could be a slight downward revision in the GDP growth rate for FY22. “Will there be a change in stance? Probably not this time thought the hike in reverse repo rate will send signal of future direction of rates,” Sabnavis opined.
RBI Monetary Policy LIVE Updates: MPC to start with a 20 bps reverse repo rate hike in February, then will change accommodative policy stance to neutral
In the upcoming meeting, we expect Monetary Policy Committee (MPC) to build a case for modest and measured policy tightening, in order to keep bond market sentiments in check.
RBI Monetary Policy LIVE Updates: HSBC Securities and Capital Markets
Those at HSBC Securities and Capital Markets (India) too expect the high government market borrowing to slow down the RBI’s policy normalisation process. “We believe a 20 basis points reverse repo rate hike on 9 February would send the right signals, but the risk now is that the RBI will postpone that to April,” they said in a note.
RBI Monetary Policy LIVE Updates: Bank of Baroda feels inflation remains ‘worrisome’
State-owned Bank of Baroda in a research note said inflation remains worrisome. An uptick in Consumer Price Index inflation has been observed lately as it climbed up to 5.6 per cent in December 2021 from 4.9 per cent in November 2021. Given the spike in crude oil prices, along with increase in global commodity prices, these factors are likely to impinge on inflation. Further, once the state elections are over, inflation is expected to increase further as fuel prices are changed, it said.
