BUSINESS
Rise in Repo rate likely to hurt homebuyers' sentiment
"Industry reckons the RBI's focus on sustainable economic growth with Real GDP forecast at 7.2 per cent for FY23, while continuing its monetary intervention to tame global inflation headwinds by increasing repo rate by 50bps. As the home loan borrowing is at the flexible rate, short term interest rate spike will certainly hurt the homebuyers' sentiments, but it averages out the cost positively in the long term," said Dr Niranjan Hiranandani, National Vice Chairman, Naredco.
Indices rise marginally after one-day gap, Sensex up 89 points
At close, Sensex ended up 89.13 points or 0.15 per cent at 58,387.93, while Nifty ended 15.50 points or 0.09 per cent higher at 17,397.50. Nearly 1,862 shares advanced, 1,490 shares declined and 157 shares remained unchanged on Friday. The IT and Telecom index gained the most on the BSE, while IT and FMCG added to the gains on the NSE.
Samsung to supply 5G solutions, equipment to Bharti Airtel
Airtel, the world's fourth-largest communications solutions provider by users, is set to roll out 5G network in India in August, in partnership with Samsung. Swedish Ericsson and Finland's Nokia have also been selected as 5G partners. Samsung said the deal includes building 5G radio stations and offering maintenance and other services. The value of the deal was not disclosed.
Loan EMIs to rise as RBI increases repo rate by 50 bps
Several banks have already raised their borrowing rates and some will again increase their rates after this hike by the central bank. "For any financial institution including NBFCs Cash in the Inventory. All NBFC must borrow money from the market and then lend to customers. Difference between borrowing cost and lending income is the profit for NBFC.
Policy rate hike to control inflation, 50bps the new normal with many central banks: RBI Governor
The policy or the repo rate is the interest rate at which the RBI lends short-term funds to commercial banks. The RBI hikes the rate generally during an inflationary time to curtail liquidity in the economy. According to Das, the overall liquidity in the system is upwards of Rs 5 lakh crore touching Rs 6 lakh crore. Das said the RBI's Monetary Policy Committee (MPC) takes a calibrated view of aspects like growth, demand and makes a balanced call in terms of rate hike.
Sensex rises more than 150 points; Nifty rises above 17,427 after RBI hikes 50 bps repo rate
By 1 p.m., Sensex was trading up 175.73 points or 0.30 per cent at 58,475.53, and Nifty was trading 45.75 points or 0.26 per cent higher at 17,427.75. Ultratech Cement, ICICI Bank, Bharti Airtel, Infosys, among others were major gainers of the Sensex during the afternoon trade.
Rupee gains 26 paise in afternoon trade to 79.20 against US dollar
In the morning trade, the rupee had appreciated more than 50 paise, but as soon as crude oil prices rises the gains has reduced. At the interbank foreign exchange, the rupee opened at 79.15 against the US dollar, then touched 78.94, registering a gain of 46 paise over the last close in the morning trade.
RBI hikes policy rate by 50bps to 5.4%
Announcing the decision of the Monetary Policy Committee (MPC) during its three-day meeting, Das said it has been decided to increase the policy rate by 50bps to 5.4 per cent with immediate effect. He also said the domestic economy is showing signs of broadening.
ED files chargesheet in Yes Bank-DHFL case
The ED had initiated a probe against Rana Kapoor, former CEO and MD of Yes Bank, and Kapil Wadhawan and Dheeraj Wadhawan, promoters of DHFL, on the basis of an FIR registered under the Indian Penal Code and Prevention of Corruption Act by the CBI. It is alleged that Rana Kapoor had entered into a criminal conspiracy with Kapil Wadhawan and others for extending financial assistance to DHFL by Yes Bank in lieu of substantial undue benefits to himself and his family members through the companies held by them.
UK will collapse into a year-long recession by the end of 2022'
Britain's big squeeze also got even worse after the Bank of England raised interest rates by 0.5 per cent to 1.75 per cent - the highest single rise since 1997 - adding 1,000 pounds-a-year or more to the average non-fixed mortgage in a new 'world of pain' for homeowners, Daily Mail reported. Food, fuel, gas and numerous other items are rocketing in price following the pandemic and the war in Ukraine - hitting record levels - but some economists have claimed that the BofE has been too slow to act as Britain careers towards recession.
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