RBI likely to announce about interest rate
RBI likely: A source said on Thursday that India’s central bank will likely announce financial relief steps to help boost financial markets that have weakened sharply due to the outbreak of coronavirus.
Meanwhile, the Indian stock market completely traded with the bearish trend on Thursday (March 12th) to the lowest level for over 2 and a half years following disease in the outbreak of coronavirus and the US withdrew from the EU.
The stock market traded with the bearish trend. The Sensex traded with a loss of 2,919.26 points reached 32,778.14 level with 8.18% down. Whereas Nifty traded with a loss of 868.25 points reached 9,590.15 level with 8.30% down.
In the border market the S&P BSE Midcap traded with a loss of 1,052.78 points reached 12,380.36 level with 7.84% down. Whereas S&P BSE SmallCap traded with a loss of 1,110.26 points reached 11,614.89 level with 8.72% down. At the same time, Nifty Bank traded with a loss of 2,516.65 points reached 23,971.15 with 9.50% down.
The market expects a rate of interest cut off from the Reserve Bank of India but the source says that no such measure has been taken yet. But one official person confirmed this news.
“RBI aims to improve cash flow in the marketplace and simplify payment problems to sectors that are affected by the breakdown of supply chains,” said the source. As a part of this, India’s monetary policy committee meeting going to held on this month 21st. Whereas, the officials said RBI Will probably not make a rate decision prior to the planned meeting.
RBI will not cut interest rates right now because from the last few months we can observe that there is a sharp rise in retail inflation. In the middle coronavirus spread across the world total global economic affected with the disease. Right now in India, 73 people infected with the coronavirus. The government confirmed this news.
Meanwhile, State Bank of India lowers MCLR (Marginal Cost of Funds based Lending Rate). The bank has announced a cut of up to 15 basis points on MCLR over the tenors.
According to the reduced MCLR, The one-year MCLR rate reduced to 7.75%. Previously it was at 7.85%, which means it cuts 10 basis points. The two-year MCLR rate at 8.05% and is now 7.95%. At the same time, Three-year MCLR to 8.05% from 8.15%.
The share of SBI traded with a loss of 29.70 points reached 215.40 INR with 12.12% down in NSE. Whereas in BSE, it traded with a loss of 32.45 points reached 212.75 INR with 13.23% down.
Besides, in today’s stock market they are no gainers. On the other hand, Yes Bank Limited, United Phosphorus Ltd, Vedanta Ltd, Hindalco Industries Ltd, Oil & Natural Gas Corporation Limited, State Bank of India, GAIL (India) Limited, Axis Bank Ltd, ITC Ltd, Bajaj Finserv Ltd traded with the bearish trend.