The Reserve Bank of India kept interest rates unchanged in its bi-monthly review on Tuesday, waiting to assess inflationary pressures and giving banks time to reflect on the central bank’s previous cuts in lending rates.
The BSE Sensex surged to a fourth straight life high on Wednesday, breaching the psychologically important 28,000 mark as banking shares continued their rally on hopes of a rate cut by the Reserve Bank of India (RBI).
Kolkata-based Bandhan Financial was little known in India’s corporate arena. But a new banking licence from the Reserve Bank has given Managing Director Chandra Shekhar Ghosh and his 13,000 employees a reason to cheer.
After registering record closing highs, the BSE Sensex ended with small weekly gains as the index fell sharply on Friday after the RBI governor’s strong comments on inflation dented sentiment.
By Abhiram Nandakumar and Ratnika Maruvada
Enthusiasm over bitcoins has dampened in India after the country’s central bank cautioned investors to be wary of using virtual currency because of the associated security, financial and legal risks.
Companies that help in processing card payments look set to benefit from rising demand for portable card swipe machines after the Reserve Bank of India adopted new rules to prevent fraud and enhance security.
By Ankush Arora and Aditya Kalra
The BSE Sensex fell 1.3 percent in the week ending Dec. 13 after high retail inflation raised fears of a rate hike. Eight of 10 analysts in a poll on Friday said they expected the central bank to raise the repo rate by 25 basis points to try and tame stubbornly high inflation.
Rakesh Kumar is not like most of the street vendors in Old Delhi. The hand-painted sign on his wooden counter, “exchange damaged, old notes,” reveals a different story. He sells money.
For around a year, Girish Kale was flirting with the idea of buying his dream house. His budget of 3.5 million to 4 million rupees ($56,000-$64,000) wasn’t going to work for Mumbai, where the kind of house the auto industry professional wanted would cost upwards of 10 million rupees.
Kale, who currently lives in a rented flat in Kandivali suburb, turned instead to Pune, a university city 150 kilometres away, with a plan to opt for a so-called 80:20 payment scheme. Such schemes allow the buyer to pay 20 percent of the property’s cost initially and the remaining amount on possession after construction.
After rising for four consecutive weeks, the BSE Sensex fell 2.6 percent in the last five trading sessions, as a surprise repo rate hike by the Reserve Bank of India (RBI) on Sept. 20 dampened investor confidence and battered banking shares.