Monetary Policy Committee to announce rate action today

Top of the Morning

In this episode, find out PNB to invest Rs 500 crore in PNB Housing Finance, and also find out about HDFC Bank hiking the MCLR rate

Business Term of the Day: Yield curve

Title –Monetary Policy Committee to announce rate action today

Description – In this episode, find out PNB to invest Rs 500 crore in PNB Housing Finance, also find out about HDFC Bank hiking MCLR rate

Business Term of the Day:  Yield curve

 

 

All eyes will be on the Reserve Bank of India’s (RBI) policy action after it concludes their 3-day monetary policy committee (MPC) meet. Experts anticipate the central bank to raise interest rates by at least 40 basis points to tame inflationary pressures. Besides that, investors’ will eye RBI’s growth trajectory and inflation forecast for FY23-24.

 

Cineline India: Cineline India Ltd, which operates the multiplex chain MovieMax, on Tuesday said its promoters would subscribe to convertible warrants worth ₹35.1 crore. Following this preferential issue, the promoters’ holding in Cineline India would increase to 69.6 per cent from the current 67 per cent, a company statement said.

Indian Hotels: Indian Hotels Company Limited (IHCL) on Tuesday announced the signing of a 88-rooms Vivanta hotel in Jammu, Jammu and Kashmir. Located in the heart of the city, the existing hotel will be upgraded into the Vivanta brand post renovation, IHCL said in a statement.

Finance minister Nirmala Sitharaman urged regulators to stay ahead of the curve when dealing with digitization while emphasizing the critical role they played during the lockdown when companies were allowed to complete compliances virtually.

 

The private lender hiked its marginal cost of funds based lending rate (MCLR) by 35 bps across all tenures, effective June 7. HDFC Bank has hiked its MCLR by 60 bps since the off-cycle 40 bps rate hike by the Monetary Policy Committee (MPC) in early May

The government has appointed Alok Kumar Choudhary as the managing director of the state-run bank for a period of two years. Choudhary, who was deputy managing director (finance) until this appointment, had started his career at SBI as a probationary officer.

The state-run bank’s board has approved an investment of Rs 500 crore by participating in the rights issue of PNB Housing Finance. The latter is also looking to raise Rs 2,000 crore by issuing non convertible debentures (NCD) on a private placement basis.

 

 

Moving on to markets

Indian indices are likely to witness a flat start on Wednesday.

Indian investors will keep an eye on RBI’s rate hike decision likely to be announced today.

Wall Street stocks finished a roller-coaster overnight session higher, while the yen touched a fresh 20-year low against the dollar in anticipation of more US monetary tightening.

Globally, the Chinese trade data and Europe’s first quarter GDP data will be keenly watched out

That apart, oil prices remained on the boil as Brent Crude hovered above $120 per barrel, whereas, WTI Crude climbed to $119 a barrel.

 

Business Term of the day

A yield curve is a line that plots yields (interest rates) of bonds having equal credit quality but differing maturity dates. The slope of the yield curve gives an idea of future interest rate changes and economic activity. There are three main shapes of yield curve shapes: normal (upward sloping curve), inverted (downward sloping curve), and flat.