Live: Nifty, Sensex Down 1%; Nifty Bank Down 450 Points
Monetary Policy Committee Cuts Repo Rate
- RBI Governor says that an off-cycle meeting of the Monetary Policy Committee was conducted
- The Monetary Policy Committee has voted for a repo rate reduction of 40 basis points
- Monetary Policy Committee votes 5:1 in favour of a rate cut
- Repo rate now stands at 4 percent from 4.4 percent earlier
- GDP growth in 2021 is likely to remain in negative territory, Governor says
RBI Governor Says:
- To extend life of credit of Rs 15,000 crore to EXIM Bank for 90 days
- To extend time period for outward remittances for normal imports to 12 months from 6 months
- Group exposure limit of banks to be increased to 30 percent from 25 percent of eligible capital base till June 30, 2021
- The provision for moratorium on term loan repayments are being extended by another three months
Money Managers Wary On Buying Debt
India's money managers have become concerned about credit risk after Franklin Templeton, a buy buyer of high-yielding Indian notes, shut six debt funds in April, Bloomberg News reports.
We continue to focus on quality within fixed income. A big part of this is due to drivers like lack of adequate liquidity and price discovery in lower-rated papers.Suyash Choudhary, Head - Fixed Income, IDFC Asset Management
Tata Asset Management is buying debt of sovereign and top rated state-run firms while Quantum Asset Management is avoiding debt altogether.
Cholamandalam Joins Hands With Maruti
Cholamandalam Investment and Finance announced a partnership with Maruti Suzuki India, under their 'Buy Now Pay Later' offer, the company said in an exchange filing.
The said offer will allow customers to start paying EMIs after 60 days of loan disbursement. The offer is available only on select Maruti Suzuki models and will be applicable on loan disbursements till June 30, 2020.
The synergies between the organizations are aimed towards singular focus to bring benefits to the customers. This ‘Buy Now, Pay Later’ offer will help customers in realizing their car dreams without postponing their purchase any further.Ravindra Kundu, ED, Cholamandalam Investment & Finance
Shares trade 3.9 percent lower after falling as much as 6.7 percent to a four-year low of Rs 121.20. Shares of Maruti Suzuki too trade 1.6 percent lower at Rs 4,971.
Markets At Noon
- Benchmark indices trade near the day's low
- Nifty down 1 percent to 9,019
- Nifty futures trade at discount of 25 points
- Sensex down 1 percent to 30,640
- Nifty Bank down 2.4 percent to 17,301
- Nifty Midcap Index down 0.8 percent
- Nifty Smallcap Index down 0.7 percent
- India Volatility Index down 1.9 percent to 33.62
- Nifty I.T. (Up 1.2 percent) and Nifty Media Index (Up 1 percent) are the only sectoral gainers
- Nifty Metal index is down 2.2 percent
- Zee Entertainment remains the top Nifty gainer; up 3.3 percent
- Axis Bank is the top Nifty laggard; down 5 percent
- 600 stocks on the NSE are trading with gains while 1,050 decline
Stock Update: Power Finance Corporation
- Trades at the lowest level since October 2018
- Among the worst performers on the Nifty 50 index
- Down for 4 out of the 5 trading sessions this week
- Declines close to 10 percent this week
- Has gained only twice in the last 15 trading sessions
- Declines 20 percent in the last 15 sessions
- Today's volumes are 1.7 times higher than its 30-day average
- Down 46 percent from its 52-week high of Rs 138.8 on June 28, 2019
- 5 out of the 8 analysts tracking the stock has a buy recommendation; 2 sell calls
- Return potential of the stock as per Bloomberg data is 67.9 percent