The Reserve Bank of India has cut interest rates this morning, promising an accommodative stance to guide the economy through the current crisis.

The benchmark stock indices are trading flat this morning after gapping down at open.

Join us as we follow the top business news through the day.

US unemployment claims surged by 2.4 mn last week

The US job market continues to get worse even as the lockdown begins to be eased.

IANS reports: "The number of initial unemplyment claims in the US totalled to 2.4 million last week as the COVID—19 pandemic continues to sweep the nation, the Labor Department reported.

In the week ending May 16, the number of Americans filing for unemployment benefits decreased by 249,000 from the prior week to 2,438,000, the seventh weekly decline in a row but staying at high levels, Xinhua news agency quoted the Department as saying on Thursday.

With the latest numbers, more than 38 million Americans have applied for unemployment benefits since the COVID—19 pandemic forced widespread business closures in mid—March.

The figures came after the Labor Department reported earlier this month that US employers cut a staggering 20.5 million jobs in April, and the unemployment rate soared to a record 14.7 per cent.

“Once one accounts for the initial claims data and those who have lost their jobs but have not qualified for unemployment, are marginally attached or are working part time for economic reasons, the near real—time unemployment rate has reached roughly 29.4 per cent,” Joseph Brusuelas, chief economist at accounting and consulting firm RSM US LLP, wrote on Thursday."

Rupee falls 24 paise to 75.85 against US dollar in early trade

Negative sentiment in the domestic bourses after the RBI's policy announcement weighed on the rupee.

PTI reports: "The rupee depreciated 24 paise to 75.85 against the US dollar in opening trade on Friday tracking weak domestic equities and strengthening American currency overseas.

Traders said the weakness in the local unit was largely due to correction in domestic equities and strengthening of the US dollar. Moreover, rising coronavirus cases in the country and US-China trade tensions weighed on the local unit.

The rupee opened weak at 75.72 at the interbank forex market and then fell further to 75.85, down 24 paise over its last close.

It had settled at 75.61 against the US dollar on Thursday.

The rupee opened weak tracking negative cues from Asian currencies which have started weaker amid mounting tensions between the US and China, Reliance Securities said in a research note."

RBI cuts reverse repo rate to 3.35%; to maintain accommodative stance

Highlights from the RBI Governor's address to the media:

* RBI advances monetary policy committee meeting; cuts policy repo rate by 40 basis points

* RBI cuts reverse repo rate to 3.35%; to maintain accommodative stance

* Six member monetary policy committee voted 5:1 in favour of 40 bps cut in interest rate

* Private consumption has seen biggest blow due to COVID-19 outbreak, investment demand has halted

* India seeing collapse of demand; electricity, dip in petroleum product consumption; fall in private consumption

* Govt revenues have been impacted severely due to slowdown in economic activity amid COVID-19 outbreak

* Inflation outlook highly uncertain; elevated level of inflation in pulses worrisome, requires review of import duties

* Headline inflation may remain firm in first half of yr; ease in second half, falling below 4% in Q3/Q4 of FY21

* GDP growth in 2020-21 to be in negative territory

* Monetary policy transmission has continued to improve

* RBI extends moratorium on loan repayments by three more months in view of COVID-19

Reliance strikes fifth deal, sells 2.32% in Jio Platforms for ₹11,367 crore

Reliance Industries on Friday announced the sale of a 2.32% stake in its digital unit to U.S. private equity giant KKR for ₹11,367 crore, the fifth deal in four weeks that will inject a combined ₹78,562 crore in the oil-to-telecom conglomerate to help it pare debt.

This is KKR’s largest investment in Asia.

“This transaction values Jio Platforms at an equity value of ₹4.91 lakh crore and an enterprise value of ₹5.16 lakh crore. This is KKR’s largest investment in Asia and will translate into a 2.32% equity stake in Jio Platforms on a fully diluted basis,” the company said in a statement.

Sensex trades flat after gap down opening

The benchmark indices are down marginally at the moment as investors weigh the easing of lockdown measures.

IANS reports: "The BSE Sensex pared losses to trade on a flat note after opening 110 points lower on Friday.

The domestic indices opened on a negative note tracking weakness in the Asian indices amid growing US—China tensions.

At 9.31 a.m., the Sensex was trading at 30,945.91, higher by 13.01 points or 0.04 per cent from the previous close of 30,932.90.

It had opened at 30,822.78 and has so far touched an intra—day high of 30,965.81 and a low of 30,670.54 points.

The Nifty50 on the National Stock Exchange was at 9,106.70, higher by just 0.45 points from the previous close.

The market will also take cues from the media briefing of the Reserve Bank of India’s (RBI) Governor at 10 a.m."