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Equity indices end lower as RBI’s policy fails to cheer investors

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SENSEX NIFTY MARKET

Mumbai, Dec 5: Broadly negative global cues as well as disappointment over the Reserve Bank’s monetary policy announcement dragged the key Indian equity indices to end in the red for the second straight day on Wednesday.

According to market observers, caution over initial signs on re-emergence of trade tension between the US and China subdued the Asian markets and subsequently impacted the domestic indices.

Even the disappointment over the Reserve Bank of India’s (RBI) decision to maintain its stance of “calibrated tightening” unchanged had its impact on the investor sentiments.

In addition, the RBI’s monetary policy committee (MPC) kept its key lending rate for commercial banks unchanged at 6.5 per cent for the second time in succession.

However, RBI’s announcement to continue its liquidity infusion measures including OMOs (open market operations) arrested the sharp decline in the equity market.

Till now, RBI has injected durable liquidity through open market operation purchases to the tune of Rs 1.36 trillion in the current financial year.

“The pace of our OMOs has stepped up with the injection of slightly over Rs 1 trillion in the last three months. Second, the RBI has also provided liberal infusion of liquidity through term repos in addition to the usual provision via the LAF…,” RBI Deputy Governor Viral V. Acharya said at the post-MPC meeting press conference.

“Based on our assessment of durable liquidity needs going forward, we have already announced an OMO purchase program of Rs 40,000 crore for December. We expect that this increased frequency and quantum of OMO purchases may be required until end of March.”

Index-wise, the S&P BSE Sensex lost close to 250 points, while the NSE Nifty50 settled at 10,784.95 points.

All sectoral indices on BSE ended in the red led by metal, auto and healthcare stocks. Interest sensitive banking stocks traded 1 per cent lower on the BSE.

However, the Nifty IT index saw a recovery as it was the only sectoral index ending in green with marginal gains.

The Sensex settled lower 0.69 per cent, or 249.90 points, at 35,884.41, from its previous close of 36,134.31. It touched an intra-day high of 36,048.65 and a low of 35,777.81.

The Nifty50 lost 84.55 points or 0.74 per cent to close the session at 10,784.95.

“RBI has adopted a cautious approach and held on to rates. Reducing SLR requirement from next quarter onwards is a welcome move,” said Rajesh Sharma, MD, Capri Global Capital.

“Some more measures like reducing risk weight specifically for NBFC lending to MSME sector to boost confidence in NBFCs would have triggered positive sentiment in the sector.”

Just after the monitory policy announcement began at 2.30 pm the Sensex traded lower by
203.62 points.

IANS

Business

Closed Markaz, no foreigners dims hopes for Nizamuddin shopkeepers

In comparison to the adjoining Bhogal market, Nizamuddin market is primarily focused on the needs of the visitors to the Markaz. Now since the markaz has been closed, the usual flow of customers is missing.

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Nizamuddin Markaz

New Delhi, July 10 : A group of five men in white kurta pyjamas wait outside the Nizamuddin Markaz for the local policeman to arrive. After some anxious moments, the policeman arrives on a motorcycle with the building”s key. It is time for afternoon prayers and only five people are permitted to offer prayers inside the Markaz five times a day. As he unlocks the gate, the five men walk in to offer Zohar Namaz.

Khaleeq, who has his small shop, selling skull caps, beads and other religious items, exactly opposite the Markaz entrance, feels that with foreigners gone from the area, the market will have a hard time to pick up.

“With the uncertainty on when foreigners would be allowed in Markaz now, the business at Nizamuddin market is badly hit. Most of the shops here are based on the foreigners” needs and demands. With no foreign customers, we are facing heavy losses,” he said.

The worst affected are money exchange shops which were mostly dependent on foreigners” visit to Markaz.

Ahmed Uzair, a banker who resides in Nizamuddin, believes that the market might now pay the price of being too much dependent on foreign customers attending the jamaat at Nizamuddin Markaz.

“Many shopkeepers are vacating their shops as they are unable to pay the rent. Many have packed up and went to their native places as they see a bleak future of what was once a flourishing market,” Uzair said.

After de-containment of Nizamuddin, the barricades present at the main road leading to Nizamuddin Markaz has been removed now but there are little or no customers in the market.

In comparison to the adjoining Bhogal market, Nizamuddin market is primarily focused on the needs of the visitors to the Markaz. Now since the markaz has been closed, the usual flow of customers is missing.

“Not just foreigners but visitors from other states in India formed the backbone for the survival of this market. It”s facing a tough time now and it seems it will continue for some time,” said Shamshad Ahmed, another shopkeeper in the area.

The Markaz was closed since the lockdown and on the night of March 29, police and health authorities started bringing people out from the Markaz and sent them to hospitals and quarantine facilities.

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PIL in Gujarat HC for saffron symbol on ”Made in India” products

It also sought the government assign different coloured symbols on products, so that an illiterate or semi-literate person can also recognise the place of origin.

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Gujarat High Court

Gandhinagar, July 9 : The Gujarat High Court has issued notice to the Centre and state governments on a PIL seeking colour coded symbols on products sold online, so that ignorant or illiterate persons can also recognise the place of the origin of the product and seeking direction to assign saffron coloured symbol to products ”Made in India.”

Ahmedabad resident Yatin Soni, in his PIL, said that the products that are sold on online platforms and web portals do not inform the prospective consumers about the manufacturing place of the product, the origin of the manufacturers and other details, which violates the fundamental rights of freedom of information ensured to Indian citizens.

After the ”Atma Nirbhar Bharat Abhiyan” launched by Prime Minister Narendra Modi, any prospective consumer, when ordering products from online platforms and web portals, should be allowed to avail of the information of the country where the product is manufactured, the nationality of the manufacturer et al, it said, adding that, at present there is no provision in law that mandates the manufacturer to display such information.

The PIL seeks directions to the Centre and the Gujarat government to mandate the manufacturer displays, on the web portal information about whether a particular product is manufactured by Indian company and in India, whether it is manufactured by an Indian company but outside India, whether it is manufactured by a foreign company in a foreign land, or in India, and if the manufacturer is an multinational company (MNC), the share of the Indian partner.

It also sought the government assign different coloured symbols on products, so that an illiterate or semi-literate person can also recognise the place of origin.

Apart for a saffron symbol for India-made products, it sought blue colour for Indian manufacturer producing product outside India, red for foreign company manufacturing outside India, yellow for products by foreign manufacturer produced in India and pink colour for products by MNCs.

The PIL also mentioned that after the Galwan valley incident – where 20 Indian soldiers were killed by the Chinese, there were many Indian customers who wanted to boycott Chinese products.

Soni said that the high court, after issuing notice, had slated the next hearing for July 29.

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No BS-IV vehicles will be registered if sold after March 31: Supreme Court

This comes as India has decided to switch to the world’s cleanest emissions standard from April 1. It has gone straight to Euro-VI emission standards from Euro-IV.

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BS IV

NEW DELHI : The Supreme Court on Wednesday observed that no BS-IV vehicles will be registered if sold after March 31, 2020.

A bench of the Apex Court, headed by Justice Arun Mishra was hearing the matter pertaining to sale of BS-IV vehicles during COVID-19 lockdown, via video conferencing.

The top court recalled its earlier March 27 order allowing sale of BS-IV vehicles for 10 days post lockdown. The apex court had back then allowed marginal relief to auto dealers and auto companies, permitting sale of 10% unsold BS-IV inventory.

Justice Arun Mishra said, “Please do not take advantage of this court by playing fraud. You have told us no sales have taken place. You are understating your values.”

He said, “no vehicle could be registered without our order.” “You have sold more than allowed,” the court noted.

KV Vishwanathan, lawyer for FADA, said, the apex court allowed registration in March 2020.

However, the Bench asked how vehicles were sold during lockdown.

“It would be violation of the spirit of the court order if we allow sales after opening of lockdown,” the Apex Court said.

This comes as India has decided to switch to the world’s cleanest emissions standard from April 1. It has gone straight to Euro-VI emission standards from Euro-IV.

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