Bank stocks such as HDFC Bank, State Bank of India (SBI), RBL Bank, Bandhan Bank and Punjab National Bank slipped nearly 1 per cent each
Monetary policy committee's decisions show there is slim chance of repo rate being increased in near future
Expects minimum Rs 1 trn of G-SAP in 2nd quarter, sees it rising to Rs 1.25 trn to keep yields soft
The RBI had kept key interest rates unchanged at the last MPC meeting held in April.
RBI's monetary policy committee will likely keep the repo rate unchanged at 4% for a sixth straight meeting
Over the last couple of months, there have been major unfavourable developments with regards to both growth and inflation.
RBI's forecast for growth is 10.5% for the current fiscal year. Most analysts expect the RBI to lower it in the June 4 monetary policy announcement
'Unwinding' is unlikely to happen before the third quarter of this year even if we don't mess up in tackling a possible third wave of Covid; rate hike may have to wait for next year
Here's a selection of Business Standard opinion pieces for the day
Structurally, it's a well-crafted policy. But like in cricket and politics, things can change dramatically for a central bank in a very short time
Will help those who can't ensure minimum balance
Here's a selection of Business Standard opinion pieces for the day
The Sensex rose 460 points, or 0.94 per cent, to close at 49,662, while the Nifty50 added 136 points, or 0.92 per cent, to end the session at 14,819
RBI should not undermine the price and financial stability objectives
Status quo expected on Wednesday, but guidance will hold the key for bond market
An OMO calendar will make bond dealers happy but a disinvestment or privatisation calendar by the government will be a more potent weapon to manage yield and push growth
Attaining different objectives could become more difficult
Overall policy focus will remain on supporting growth through low and stable interest rates and abundant liquidity
Reversal of interest rate cut should have been avoided
However, some want core to be monitored as well, MPC should be given leeway to choose target