Bank of Baroda has reduced its repo-linked lending rate by 50 basis points to 8.15%, effective June 7, following the Reserve Bank of India's policy rate cut. This move aims to make loans more affordable for homes, cars, and businesses, potentially boosting credit demand. The rate cut aligns with the bank's commitment to support customers with affordable credit.
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Indian equities experienced a significant surge in May, propelled by strong performances in defence stocks and microcaps. The Nifty 50 rose by 1.71%, while the Nifty Microcap 250 soared by 12.10%. Investor optimism was further fueled in June by a surprise rate cut from the RBI, boosting rate-sensitive sectors.
The RBI maintains its cautious stance on cryptocurrency, citing potential risks to financial stability and monetary policy, despite the Supreme Court's view against a ban. A government committee is currently reviewing the matter. The RBI has also introduced a new regulation-making framework emphasizing public consultation, impact analysis, and regular reviews to adapt to evolving conditions.
IndiGo and Bangalore International Airport Ltd. (BIAL) have partnered to establish a dedicated MRO facility at Kempegowda International Airport, Bengaluru, with BIAL allocating 31 acres for the project. This collaboration aims to bolster Bengaluru's status as a premier aviation hub and supports IndiGo's fleet expansion plans, including long-haul operations and new domestic destinations.
Schloss Bangalore Ltd, owner of "The Leela" brand, had a weak stock market debut, listing below its IPO price. Shares opened at Rs 406 on NSE and Rs 406.50 on BSE, against an IPO price of Rs 435. Despite the brand's strength and expansion, investor caution prevailed. The IPO was subscribed 4.5 times.
Foreign Portfolio Investors (FPIs) initially withdrew Rs 8,749 crore from Indian equities in early June amid global uncertainty. However, a significant shift occurred after the RBI's unexpected 50 basis points rate cut, boosting investor confidence.
Sebi has approved IPOs for six companies, including HDB Financial Services and Vikram Solar. HDB Financial Services plans to raise funds through a fresh issue and offer-for-sale, while Vikram Solar's IPO includes a fresh issue and an offer-for-sale by promoters. The funds raised will support business growth and capital requirements, with shares to be listed on BSE and NSE.
The Adani group has refuted a Wall Street Journal report that alleged connections between its businesses and Iranian LPG, labeling the claims as unfounded and malicious. Adani group clarified that it does not handle any cargo from Iran at its ports or manage ships owned by Iranians, strictly adhering to this policy across all its ports.
UBS has revised India's FY26 GDP growth forecast upwards to 6.4% from 6%, citing resilient domestic demand and potential trade benefits. This adjustment considers factors like eased tariffs on Chinese imports and a possible US-India trade deal. While anticipating robust household consumption, UBS foresees a slight slowdown in capital expenditure due to global uncertainties.
T Rabi Sankar, RBI Deputy Governor, has been appointed as a part-time member of the 16th Finance Commission, replacing Ajay Narayan Jha. Sankar's term will last until the Commission submits its report or October 31, 2025. The Commission, chaired by Arvind Panagariya, is responsible for recommending the distribution of tax revenues between the Union and the States.
India's engineering exports face significant headwinds as the US prepares to impose a 50% tariff on steel and aluminium imports, effective June 4, 2025. This move, doubling existing duties, threatens approximately $5 billion in annual exports, prompting concerns from the EEPC and AAI.