Inflation, however low, still means price rise. When interest rates fall, they bring down future returns for savers, dent consumer confidence and make them stingy as it becomes harder to live off the accumulating capital. Plus, a slowing economy hits earnings confidence by reducing job prospects and lowering pay hikes. If the slowdown is on demand side, can bringing down real interest rate really help revive consumption?
STREET PULSE: Where we stand  | SGX Nifty traded flat at 7 am (IST), signalling a possible positive start for Dalal Street. Asian share markets were wobbly in early trade, as investors tried to find footing after a string of heavy losses. MSCI's broadest index of Asia-Pacific shares outside Japan eased 0.03%, but Nikkei inched up 0.1%. On Wall Street, the Dow fell 22.45 points in overnight trade, while the S&P500 gained 2.21 points and the Nasdaq 29.56 points. Read More |
| Crude oil futures more than $1 a barrel amid a weaker dollar, after tanking over 4% on Wednesday amid concerns over a global slowdown. Brent rebounded by $1.29 to $57.52 a barrel, while WTI crude futures jumped $1.30 to $52.39. Read More |
| LOOK WHO'S |  |
Shopping Season... Morgan Stanley says Indian shares are getting to a bottom as per valuation and sentiment indicators, following a 9% drop from their record highs, but said risks related to the real economy and slowing global growth remain. The risk-reward favours buying equities now, but a V-shaped recovery in stocks depends on actions of policy makers, it said.
Read More Cheaper Loans, ahoy!... Home, car loans set to cost less soon as the RBI governor nudges lenders to pass on rate cuts. Minutes after governor Das reminded high-street banks about their poor record in policy rate transmissions, largest lender SBI reduced lending rate by 15 basis points across tenures.
Read More | WHO'S |  |
Bold J&K move triggers neighbour's envy...
Reacting to the change in status for J&K, Pakistan announced a downscaling of diplomatic ties with India, suspension of bilateral trade and vowed to approach the UN Security Council for intervention. Pakistan expelled the Indian high commissioner and said it would also not be sending an envoy to India.
Read More Motown blues... Hit hard by falling sales, automakers have made a pitch for a GST cut to 18% from 28%, sought higher depreciation benefits and called for a favourable scrappage policy to boost demand. They also asked for extra time to offload BS-IV inventory while many questioned the push for an early switch to electric vehicles.
Read More Meanwhile... While RBI stuck to its stand to not create a bailout package for the NBFC sector, governor Das said the regulator won't allow any big non-bank lender to collapse. It has increased monitoring and eased lending norms & exposure limits to alleviate stress in this space.
Read More 
Buy
Sell
No comments:
Post a Comment