Key Highlights from Today's RBI Press Conference

Mon, 16 Mar 05:30 pm

   Previous Close   

   Pre-Open   

   09:30 am   

   12:30 pm   

   Closing   

It was mayhem on Dalal Street today as India share markets traded deep in the red with Sensex and Nifty witnessing sharp fall.

At the closing bell, the BSE Sensex stood lower by 2,713 points (down 7.9%) and the NSE Nifty stood down by 756 points (down 7.6%).

Losses were see tracking a sell-off in global markets as a new wave of fear about the spread of the coronavirus and its economic impact gripped investors.

Losses were also seen amid wild speculation that the Reserve Bank of India (RBI) may follow its global peers and announce an emergency rate cut.

Owing to the above developments, the banking regulator had called a press conference today.

Here are some of the key highlights from the same:

On Interest Rate Cut Decision: RBI Governor Shaktikanta Das said the interest rate decision will be taken in the monetary policy committee (MPC) meeting and he's not ruling out any possibility on an interest rate cut. He said that the committee is estimating impact of COVID-19 and will give its growth estimates in MPC. As per him, India is relatively insulated from global value chain, but there will be some impact.

On Indian Sectors Amid COVID-19 Pandemic: Already sectors like tourism, hospitality, airlines and others are being affected due to the outbreak of Coronavirus. There is considerable uncertainty about duration of pandemic and the RBI has been taking some calibrated measures to ensure financial markets and institutions remain sound and resilient.

It was stated that the RBI has several instruments at its command and stands ready to take all necessary measures to mitigate impact of COVID-19 on Indian economy.

Steps Based on Current Evaluation:

1. Propose to conduct another 6 months US dollar/ Rupee sell-buy swap on March 23.
2. RBI will conduct long term repo operations (LTRO) in multiple tranches up to a total amount of Rs 1 lakh crores at the policy rate. This will be followed by a review of performance of LTRO. (The LTRO is a tool under which the central bank provides one-year to three-year money to banks at the prevailing repo rate, accepting government securities with matching or higher tenure as the collateral)

On the Coronavirus Spread:

• The governor said Coronavirus outbreak is rapidly evolving into a human tragedy. India is not immune to this pandemic as over 100 cases already reported. Looking from an economic standpoint, COVID-19 could impact economic activity in India directly through sectors where exposure to China is relatively high.With regard to economic fallout of COVID-19, the RBI stands ready to take whatever action is required at the appropriate time.

Note that the coronavirus threat has meant sharp losses for global stock markets.

We have written a piece around how deep this impact has been felt in the global financial markets.

You can check out the same here: Worst Week for Global Stock Markets: Coronavirus Impact in 10 Points

Addressing Next Steps for Yes Bank:

Das said the moratorium on Yes Bank will be lifted on March 18 at 6 pm and new board will assume position on March 26 and administrator will vacate office.

He assured depositors their money is completely safe and there is no need for worry saying that in the history of Indian banking, depositors of SCBs have never lost money.

It was announced that depositors can withdraw their money after 6pm on March 18.

Das announced that if it is required, RBI will support Yes Bank with respect to liquidity.

He also added that interactions with the banks investing in Yes Bank gives the RBI committee confidence that the revival plan will work out.

To know more about the YES Bank saga, you can read one of our recent articles explaining the same here: How the YES Bank Collapse Unfolded - 10 Points.

Assuring Safe and Sound Banking System: It was said that the RBI has written to all state governments impressing upon them that the Indian banking sector is safe and sound and health of banking sector, including private banks, is good.

So here were the main takeaways from today's press conference held by RBI.

Note that RBI's regular monetary policy review is scheduled for March 31 to April 3, 2020.

We will be keeping you updated on all the announcements from the same. Stay tuned!

And to know what's moving the Indian stock markets today, check out the most recent share market updates here.

For information on how to pick stocks that have the potential to deliver big returns, download our special report now!

Read the latest Market Commentary

Top Gainers TodayTop Gainers over 1-WeekTop Gainers over 1-MonthTop Gainers over 1-YearTop Gainers over 3-YrsTop Gainers over 5-YrsTop Losers TodayTop Losers over 1-WeekTop Losers over 1-MonthTop Losers over 1-YearTop Losers over 3-YrsTop Losers over 5-YrsOnly BuyersOnly SellersMost Active StocksMost Popular Stocks52 Week High Stocks52 Week Low Stocks

INDICESBSE (Rs 0 to 1)BSE (Rs 1 to 2)BSE (Rs 2 to 4)BSE (Rs 4 to 10)BSE (Rs 10 to 20)BSE (Above Rs 20)BSE - AllBSE-30BSE-100BSE-200BSE-500BSE AutoBSE BankexBSE Capital GoodsBSE Consumer DurablesBSE FMCGBSE HealthcareBSE ITBSE MetalBSE Oil & GasBSE PSUBSE TeckBSE RealtyBSE PowerBSE A GroupBSE B GroupBSE Mid-CapBSE Small-CapBSE Basic MaterialsBSE Consumer DiscretionaryBSE IndustrialsBSE UtilitiesBSE Sensex 50BSE Sensex Next 50BSE Bharat 22BSE 150 MidCapBSE 250 SmallCapBSE 250 LargeMidCapBSE 400 MidSmallCapBSE AllCapBSE LargeCapBSE SmallCap SelectBSE 100 LargeCap TMCBSE InfraBSE ManufacturingBSE CPSEBSE Private BankBSE Diversified FinancialsBSE MomentumBSE Low VolatilityBSE QualityBSE Enhanced ValueBSE Divident StabilityS&P BSE IPOBSE SMEIPOBSE 100 ESGBSE CarbonexBSE GreenexNSE (Rs 0 to 10)NSE (Rs 10 to 20)NSE (Above Rs 20)NSE - AllNSE-50NSE ITNSE Nifty Midcap 50NSE JR. NiftyNSE Bank NiftyNIFTY Next 50NIFTY 100NIFTY 200NIFTY 500NIFTY MidCap 100NIFTY SmallCap 250NIFTY SmallCap 50NIFTY SmallCap 100NIFTY LargeMidCap 250NIFTY MidSmallCap 400NIFTY AutoNIFTY Consumer DurablesNIFTY FinanceNIFTY FMCGNIFTY MediaNIFTY MetalNIFTY PharmaNIFTY Private BankNIFTY PSU BankNIFTY RealtyNIFTY Oil & GasNIFTY SME EmergeNIFTY CommoditiesNIFTY CPSENIFTY EnergyNIFTY India ConsumptionNIFTY InfraNIFTY MNCNIFTY PSENIFTY Serv SectorNIFTY100 Liquid 15NIFTY Midcap Liquid 15NIFTY Midcap 150 Quality 50NIFTY50 Equal WeightNIFTY100 Equal WeightNIFTY100 Low Volatility 30NIFTY100 Alpha 30NIFTY Alpha 50NIFTY Dividend Opportunities 50NIFTY High Beta 50NIFTY Low Volatility 50NIFTY200 Quality 30NIFTY 500 Value 50NIFTY 100 Quality 30SECTORSAgricultureAirlinesAluminiumAsset Management CompaniesAutomobilesAuto AncillariesBanks (Private)Banks (PSU)BankingCementChemicalsDefenceDiagnosticsDronesEngineeringElectric VehicleElectric Vehicle BatteryEnergy SourcesESGEthanolFertilizersFintechFMCGFoodGreen HydrogenHotelsInfrastructureInsuranceInvestment and FinanceInvITIT (Large)IT (Others)LogisticsMediaMetalMiningIndia's Big Tech StocksIndian PharmaMNC PharmaPSUPaintPaperPlasticPowerRating AgenciesReal EstateREITsRenewable EnergyRetailingSemiconductorShippingSteelSugarSupply ChainTelecomTextilesTravel Support Services

10 results 25 results 50 results 100 results All results

Indian Share Market Update: Top Gainers and Losers