Mumbai: Liquidity in the banking system has slipped into its deepest deficit in almost six months, inflating borrowing costs, as outflows due to corporate advance taxes and the Reserve Bank of India’s likely actions to stabilise the rupee have drained lenders of funds. As of September 16, the RBI infused ₹68,785.94 crore into the banking … Read more
Mumbai: The Monetary Policy Committee appears prepared to look past the seemingly transitory phase of high inflation stoked by vegetable prices, but steps to reduce liquidity overhang in the banking system are likely to help contain price pressures, minutes of its August 8-10 meeting showed. “Given the likely short-term nature of the vegetable price shocks, … Read more
The Board of Kamdhenu Ventures has approved a proposal to issue bonus shares to its investors in the proportion of 1:1, which means, for every share investors hold, they will get an additional share. “The Board has recommended an issue of 1 bonus equity share (fully paid‐up) of Rs 5 each for every 1 existing … Read more
Mumbai: Dollar-rupee forward premium rates, which represent the interest rate differential between the US and India, have jumped over the past week due to hardening domestic bond yields and the Reserve Bank of India’s (RBI) efforts to manage the impact of hefty foreign inflows on liquidity and the local monetary unit that already faces stiff … Read more
After the RBI MPC paused monetary tightening in April 2023, although attempting to reinforce that the pivot is way off, the markets are bracing for the onset of the rate cuts sooner rather than later. The softer than expected inflation (particularly the recent moderation seen in the seasonally adjusted core inflation), above 1% real policy … Read more
Global stock markets sagged while the Japanese yen rose on Thursday in reaction to the Fed’s policy statement and signs of stress at another U.S. regional bank, spurring investors to price in a pivot rather than just a pause in rate rises. Another U.S. regional bank, PacWest Bancorp, reported troubles overnight, reminding investors of the … Read more
After withdrawing record funds in 2021-22, foreign portfolio investors (FPIs) continued their sell-off in the last fiscal too and pulled out Rs 37,631 crore from Indian equities amid aggressive rate hikes by central banks globally. The outflow trend is likely to reverse in the current financial year since India has the best growth potential in … Read more
India’s external account faces slowing foreign fund inflows — both in direct investment as well as portfolio flows — as a fallout of monetary tightening in the western economies. The ebbing fund flows are putting pressure on the local currency while the falling global crude prices and surging services exports come as a respite and … Read more
Credit Suisse Chief Executive Ulrich Koerner spoke of the strength of the Swiss lender’s liquidity basis in an interview with CAN on Wednesday, after its share price dropped more than 30% following comments by the company’s lead investor. “Our capital, our liquidity basis is very very strong,” Koerner said. “We fulfill and overshoot basically all … Read more
Cracks are appearing in the global financial system as the decade-long era of cheap money ends, with some investors worrying the shock collapse of Silicon Valley Bank signals world markets may be on the cusp of a reckoning. Over the past year, the U.S. Federal Reserve launched its most aggressive interest rate hiking cycle since … Read more