About
The Indian rupee weakened to 89.9 per USD after the RBI cut interest rates by 25 basis points to 5.25%. This decision was influenced by low inflation and steady growth, creating a "Goldilocks" scenario. The rupee's decline is due to soft trade flows, capital outflows, and U.S. tariffs. The RBI maintained a neutral stance, suggesting this may be the final rate cut for now.
The Reserve Bank of India (RBI) has lowered its key interest rate by 25 basis points to 5.25% and announced measures to inject up to $16 billion into the banking system through debt purchases and a foreign exchange swap. The RBI aims to support growth and bond market sentiment, with open-market operations and FX swaps scheduled for December. This marks the first OMO auction since May, reflecting RBI's awareness of G-sec yields and FX risks.
** India's real estate stocks rises 1.3% after RBI cuts repo rate by 25 basis points** Nine of the 10 sub-index constituents trade higher** India's central bank cuts key lending rate in line with consensus view** Also announces open market operations of 1 trillion rupees to boost liquidity** Lower interest rate results in cheaper loans and can aid property sales** Benchmark Nifty 50 and Sensex up 0.3% each
** Financials climb 0.7%** Reserve Bank of India cuts key lending rate by 25 basis points to support economic growth** Rate cut makes borrowing cheaper, aiding loan demand and lowering funding costs, helping banks and non-bank lenders** NIFTYFIN was up 0.2% ahead of policy decision** Of 20 stocks on sub-index, 14 trading higher
Indian companies Adani and Hindalco are exploring investments in Peru's copper sector amid rising demand. Peru, a major copper producer, is negotiating a free trade agreement with India to secure copper supply chains. Adani and Hindalco are in early stages of investment exploration, with India aiming to source most of its copper concentrate from overseas by 2047. Free trade talks, including copper supply, are in final stages, expected to conclude by May.