Profit 360 | MPC Keeps Repo Rate Unchanged | NDTV Profit
- #Sensex, #Nifty resume declines after one-day breather
- #RBIPolicy: MPC keeps repo rate unchanged
Tune in to 'Profit 360' with Nupur Talwar Suri for these and more top news of the day. #NDTVProfitLive
- #RBIPolicy: MPC keeps repo rate unchanged
Tune in to 'Profit 360' with Nupur Talwar Suri for these and more top news of the day. #NDTVProfitLive
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00:00Now the sense X drops around 500 points from the day's high it stocks continue to drag the nifty
00:08Mark Mobius positive in India says it's still the best bet in an uncertain world
00:16RBI governor Shakti Kantha Das urges banks to innovate offer new products and go out there to get deposits as concern is
00:24Depositors are shifting away from bank deposits to alternative investments
00:30The RBI is worried about high food inflation and is keeping an eye on it says governor Shakti Kantha Das
00:36Real GDP growth is higher than estimates
00:42Nina Chopra will bid for a second successive gold medal in men's javelin throw at the Olympics
00:49While the Indian men's hockey team takes on Spain in a playoff for the prones
00:53Vinesh Bhogat appeals in the court of arbitration for sport against disqualification from the Paris Olympics
00:59Asks for a joint silver with the losing finalist
01:06Bangladesh's interim government led by Nobel laureate Muhammad Yunus will take oath today
01:12Yunus's Advisory Council will have 15 members
01:23Oh
01:30Good evening and welcome you're watching profit 360 on any TV profit and I'm no portal bar Suri
01:36Straight up to a look now at how the markets fared today the nifty and the sensex ended lower
01:42With farmers as the top gainer harsh Saita is joining us with a quick
01:46Wrap of all the action on the large street Harsha
01:50Not looking too good today
01:53Well, it's another day of weakness we saw a couple of days of strength, but that's been given up and we've given up
02:0024 200 we're now very close to 24 100 at least at close today. We've closed at the day is low
02:07There you go. That's the low point of the day
02:10Even though we were briefly in the green for a slight bit of time of the day somewhere midway through the day
02:17But outside of that we've closed lower
02:19So it's it's a weak market around 0.7 percent lower is where we've closed at
02:24let's pull up the heat map see which stocks were most impacted and
02:29There you go some life insurers
02:32Showing some bit of respite Tata Motors on the new launch has of the Tata Motors
02:39Tata curve has
02:41Done fairly well after a couple of good positive brokerage notes
02:44It's TFC Bank was up a percent which kind of held on to the market slide, but look at that sea of red
02:51We saw at least
02:5315 or 13 stocks slide over 2% in trade today and we had IT
02:59Where there was some bit of pain HCL tech LTI mine tree some bit of pain even in pharma
03:06We saw hospitals and pharma Davis Apollo hospitals power grid
03:09Which was one of the big gainers yesterday has now sunk two and a half percent in trade today
03:14let's quickly pull up the sectors which were buzzing and
03:18among sectoral indices can
03:21Maybe the farmer was doing well, but I T that's the bottom performer there
03:26And we saw metals also slide around 1.7 odd percent the nifty energy was down 1.6 as well and outside of that
03:34Look at some of the gainers the nifty
03:36Pharma index as well as the nifty bank just about closed flat
03:40But the nifty farmer was up around a third of a percent along with media
03:43Let's quickly pull up the the broader markets the nifty mid cap as well as the small cap indices
03:50The nifty mid cap closing nearly at the day's low a third of a percent down the small cap to at the day's low
03:57very close to that
03:59Third of a percent down or thereabouts. Let's pull out the BSE 500 to cap this one off and
04:05lots and lots of earnings reactions from lemon tree to AstraZeneca to
04:11Balaji amines Kaplan point all of them impacted by numbers are we and I'll to poor set four and a half percent lower
04:18among the gainers well symphony BASF second consecutive day where these two have been
04:24Absolutely a buzz symphony for more than a couple of days now and you'll see some good earnings reactions here
04:30Soos lawn continues its 5% higher journey as has been the case since a while now, but broadly we're seeing
04:38Among the at least the advanced decline was quite poor in favor of the declines. It was a weak market
04:44All right, thank you very much for that
04:46Now despite global markets being gripped by volatility mark mobius believes the US market is yet to reach bare territory
04:53Listen in as he talks about global trends and how Indian markets have outperformed the US amidst the volatility
05:01Well, the yen carry trade was
05:03Sort of the trigger to have a correction in global markets, particularly the US market, but you must remember the background to this is that there's a great deal of uncertainty.
05:16In the world, and particularly in the US as a result of the upcoming election. As you know, the difference in policies between the Democratic and Republican candidates are quite wide. The differences are very wide.
05:31So that's one of the keys to uncertainty because nobody knows how this will turn out at the end of the day, and it will have global implications.
05:40But in addition to that, there's the uncertainty about the war in Ukraine, the situation with China and Taiwan and the situation in Israel and the Middle East. So you have all of these certain certainties piling up
05:56In the minds of people and investors around the world. And that creates volatility. So when you have a trigger like what you've seen in Japan with the yen carry trade that carries over into the market, generally.
06:12However, if you look at the correction in the US market, it is not that big. In other words, we're not into a big bear market at this stage of the game, at least.
06:24And if you look at India, India's reformed better than the US market. And that says a lot about the incredible growth rate of India and the dynamic economy that India now has.
06:38Now from markets to the central bank, the RBI left the repo rate unchanged at 6.5% for the ninth consecutive time.
06:45Now the Reserve Bank also highlighted solid economic growth and the easing of inflation.
06:50Vishwanath Nair is joining us with the key takeaways. We see the ninth straight policy without a rate cut.
06:57What came through this entire press conference that the RBI governor had just held with reporters was that there is a need to look at food inflation closely whenever you're having a rate decision that has been made by the MPC.
07:12Remember that a little while ago, the topic of food inflation had come up where people were suggesting that maybe food inflation needs to be removed from the framework, the monetary policy framework, because anyway, the MPC's decision on rates does not really control food inflation.
07:28So it doesn't matter if food inflation is high or low. That shouldn't come in the way of rate decisions.
07:33But what the RBI governor is pointing out specifically is that food inflation is an important measure to look at.
07:38It is also one of those points which really truly affect the average household in India and therefore their expectations of inflation are sort of moving according to how food inflation evolves over time.
07:53So there is no way that you can remove food inflation from the equation. That's what he's saying.
07:58But maybe the 46% weightage that it has in the entire CPI basket, we're not entirely sure whether there will be a review or not. There's a process on, so we'll see what comes out of that.
08:10The other point that stood out from the entire discussion was with respect to banks and their move towards retail deposits.
08:17Now banks have not been very successful in attracting a lot of retail deposits.
08:21What the RBI governor is repeatedly telling them is that people are moving their funds into other alternate investment avenues.
08:29Banks need to sit down and come up with innovative ways to attract these deposits to ensure that they leverage their large branch network and attract these retail depositors to come into the banking system.
08:40And that's the only way that the banks can support their entire credit growth cycle.
08:44So two major things that popped out for me, the first one was the emphasis on food inflation and the second on how deposits are key for any bank to grow.
08:54Now the RBI governor Shaktikanta Das said that the central bank was keeping a close eye on food inflation as pressures from that end could cascade into higher prices on services as well. Listen.
09:06Continuing food price shocks slowed the process of disinflation in Q1 2024-25. There is also considerable divergence between headline and core inflation.
09:21This has brought to the fore the issue of how much importance should the MPC give to food inflation. Food inflation pressures cannot be ignored.
09:34Further, public at large understands inflation more in terms of food inflation than the other components of headline inflation.
09:45Therefore, we cannot and should not become complacent merely because core inflation has fallen considerably.
09:54Second and equally important is the reality that high food inflation adversely affects household inflation expectations, which have a significant impact on future trajectory of inflation.
10:10The MPC may look through high food inflation if it is transitory. But in an environment of persisting high food inflation as we are experiencing now, the MPC cannot afford to do so.
10:24It has to remain vigilant to prevent spillovers or second round effects from persistent food inflation.
10:32Another important point that the RBI Governor touched upon was that depositors were moving away from bank deposits and parking their money in alternative investment avenues.
10:43He warned that this trend could expose banks to liquidity issues in the future.
10:48With regard to LCR, liquidity coverage, which the banks are expected to maintain, it's a draft which we have put out in the public domain.
11:02We will get inputs from all stakeholders, including the banks and other experts. Based on that, we will finalize our decision. We will take a decision.
11:12So far, it will not be correct to say that we have increased the liquidity requirements because it is still under discussion. We are waiting for the inputs which will come.
11:24So far as deposit rates are concerned, it is for individual banks to decide on these matters which are entirely a part of their commercial decision making.
11:36Lending rates and deposit rates, as you know, are deregulated. It is for banks and the situation will vary from bank to bank.
11:48So depending on the overall economic situation, financial conditions prevailing, depending on individual banks' own internal position with regard to how much deposit they have,
12:00what is the composition of their deposit, what is their loan growth, it is really for the banks to decide on the deposit rates and the banks will have to take a call.
12:12Let's get you a reaction from a banker, the Managing Director of the State Bank of India, Ashwini Kumar Tiwari said that money will come back to banks if there is a market correction. Listen in.
12:23Just compare this situation to some years back when we had a similar situation, markets were doing very very well and deposit growth was lagging the loan growth for about 4-5 quarters.
12:34But ultimately it evened out as the markets corrected and as the banks also focused more on deposits like we are doing now, so this came back to the normal. So I guess this ultimately will happen.
12:45Now economist Tanvi Gupta Jain told NDTV Profit that the issue of a mismatch between the credit and deposit growth has been a worry for some time now.
12:53I think what is interesting is that what is their take on the credit. So they are not comfortable with credit flowing into other sections of the society, largely in the unsecured loan category or the equity home loan which might be going into speculative purposes.
13:09And I think that is very interesting because credit has been a big positive for India's economic growth. But since FY23, the credit growth has consistently outpaced the deposit growth and it looks like the RBI is now getting more and more cautious of the fact and there will be more measures coming up, how do you streamline the credit and deposit growth.
13:30Alright now moving on, 200 Hero Electric dealers have been protesting outside the company's headquarters in Gurugram for the last 3 days. Tushar Deep Singh joins us with more.
13:41Hi Tushar, Tushar to begin with tell us what this protest is about and any reactions that you are getting from the company.
13:46Hi Nupur, so yes 200 dealers are literally camping outside the company's headquarters in Gurugram seeking dues of up to Rs. 500 crore that have not been paid for the last 2 years.
14:00Now that's a very stark change from the fortunes of Hero Electric which until 4 years ago was the market leader with about 36% market share. Now it's barely existing.
14:10The company's manufacturing plant has also been shut down. Now all of this happened because the company was found guilty of an imports fraud under the fame to subsidy scheme that was for electric vehicles in India.
14:25So regarding this particular, the visuals that you are seeing right now of the dealers, the dealers said that they have urged, they met the management and they urged the management to give at least half or even a quarter of the dues that are pending.
14:38And the company said nothing doing, you can take any recourse that you want to take. We reached out to the company as well, they acknowledged that a protest is going on and that a statement in this respect will be issued shortly.
14:51Again so Hero Electric, quite a turn of fortunes. How the rest pans out, we'll let you know when the more updates come in.
15:00Alright Tushar, thank you very much for joining us and bringing us those details.
15:05Now the Adani family topped the list of first generation entrepreneurial families which is supported by the next generation.
15:14This is in the 2024 Barclays Private Clients Hurun India's list of most valuable family businesses.
15:21The Adani family has businesses worth 15 lakh crore rupees.
15:24The family is followed by the Poonawala family which manages the Serum Institute of India with 2.4 lakh crores.
15:31The Divi family of Divi Laboratories came in third with a valuation of 91,200 crore rupees.
15:38The top 10 families in the list have a total value of 60 lakh crore rupees.
15:43This surpasses the combined GDP of Switzerland and the UAE.
15:49Now the centre has waived clinical trials in India if drugs that are approved in the United States, United Kingdom, Japan, Australia, Canada and the European Union.
16:00Varsha Chandnani is here with us for more details on this.
16:04Varsha, tell us more about this and which are the companies that will be benefiting by this waiver?
16:10Well thanks Lubbu for that.
16:12So yes, central government has decided to waive requirement of some clinical trials in India if the drugs are already approved in US, UK, Japan, Australia, Canada and European Union.
16:23Now so basically what does this mean? They do not have to do clinical trials if the drugs are already US FDA approved.
16:30The decision is aimed at speeding up the availability of new drugs and medical devices in the country.
16:36And the permission doesn't extend to all the drugs and primarily applies to 5 categories.
16:41Now we did speak to Forum Parekh from Sher Khan and according to her the move will benefit both domestic and foreign drug makers in India.
16:48And according to her Indian companies having predominant presence in India market will benefit much higher than companies having multiple geographical exposure.
16:57And if you see many large cap companies have almost one third of sales coming from US which is if their plants are already US FDA compliant.
17:05So for those products that can be easily supplied to India without any regulatory approval.
17:11In India, speaking of the companies in India there are companies like Alchem Labs which has 70% of sales coming from India.
17:18And other large cap companies like Lupin which has 30% of revenues coming from India.
17:23Some other companies which will be benefited from this move is Ajanta Pharma, Torrent Pharmaceuticals, JB Chemicals.
17:30And all the MNC companies like Abbott India, Glaxo Pharmaceuticals, Sanofi will get benefited as they don't have to spend money on doing the trials.
17:38So it is just easing of the regulatory hurdle which has been done by the government.
17:43Alright Varsha thank you very much for joining us and explaining that to us.
17:47Now on to our special segment called Adulting 101.
17:53The first job is always exciting but managing your financing at the beginning of the career is a tough one.
18:00One of the biggest challenges is handling the cost of rent to help you with financial hurdles and save money in your pocket.
18:06Here's a look at some steps that you should try.
18:11When you get your first job in a new city managing your personal finances is very important.
18:16Renting is unavoidable at least initially and it can drain most of your salary.
18:22Here are three steps to save money on rent.
18:25Step 1. Who doesn't want privacy and a home or a room all to oneself.
18:30But when starting out as a young professional you also need to start saving.
18:33Research shows that more than 30% of income is spent on rent in metro cities.
18:39Instead share a room with a friend or stay as a paying guest and you will save a large chunk of money on rent.
18:46Check out places like Zostels, Woodstay, The Hosteller and more where you get the basic amenities and the cost is comparatively less.
18:55Step 2. Rent a place close to your office.
18:58You might save on rent but you will end up spending extra time and extra money on travelling to and from the office.
19:06Step 3. Once you find a house managing it can also be a big task.
19:12There will be spends on electricity and groceries.
19:15Make sure that you don't spend more than 10% of your rent on these.
19:19These steps can be beneficial in managing your personal finance and you can save a big chunk of your initial earnings.
19:26I am still to come on Profit360.
19:29We bring you updates about Vinesh Fogart who has now appealed for a joint silver medal.
19:34Stay with us.
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