RBI lowers the repo rate to 4.4% by 75 basis points

RBI lowers the repo rate to 4.4% by 75 basis points

RBI lowers the repo rate to 4.4% by 75 basis points

RBI lowers the repo rate:

Governor Shaktikanta Das of the Reserve Bank of India (RBI) declared on Friday a decrease in repo rates of 75 basis points to counter the economic effect of highly dangerous coronavirus outbreaks. 

Meanwhile, Minister of Finance Nirmala Sitharaman’s announcement of Thursday’s various welfare initiatives also supported investor feelings. She announced Rs 1.70 lakh crore to the poor to cool down the economic blows triggered by the pandemic of the 21-day lockdown.

Key points:

  • The rate of policy repo lowered from 5.15% to 4.4% by 75 bps.
  • The return rate lowered to 4% by 90 bps.
  • A meeting of the monetary policy scheduled for 31 March-3 April revised on 25-27 March.
  • The Committee on Monetary Policy agreed 4:2 to lower the repo rate by 75 bps.
  • Lowered the reverse repo rate more to allow banks to lend.
  • The Cash Reserve Ratio (CRR), for a period of 1 year starting on March 28, for all the banks, was lowered by 100 bps to 3% of net demand and debts with effect.
  • All loan institutions requiring a 3-month moratorium on the collection of term loan payments.
  • RBI to add Rs 3.74 lakh crore liquidity to the system.
  • Meanwhile, India lockdown economic activity down, and there is a significant stress on the financial markets.
  • Finance is the economy’s lifeline, which at this stage is the key aim of the Reserve Bank of India.

Stock Market March 27th Update Sensex and Nifty

On the fifth day of the week, the stock market started trading with a bearish trend. The Sensex trading with a loss of 177.92 points reached a 29,768.85 level with 0.59% down. Whereas Nifty trading with a gain of 13.05 points reached 8,654.50 level with 0.15% up.

In the border market, S&P BSE Midcap trading with a gain of 39.85 points reached a 10,608.04 level with 0.38% up. Whereas, S&P BSE SmallCap trading with a loss of 59.45 points reached 9,529.90 level with 0.63% down.

Top gaining stocks: Axis Bank Ltd, Indusind Bank Ltd, State Bank of India, HDFC Bank Limited and ICICI Bank Ltd.

Losing Stocks: Hero Motocorp Ltd, HCL Technologies Ltd, Bharti Airtel Limited, Bajaj Auto Ltd and GAIL (India) Limited.

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