RBI cuts its key interest rate, but the move doesn’t bring any relief to Indian equities.
Hi, I am Samapti Das, and here are the day’s top business stories.
First, the big headline from India – The Reserve Bank of India lowers its key interest rate by 25 basis points to six per cent. This is the second straight repo rate cut by the RBI, following the downward revision in February. RBI Governor Sanjay Malhotra says it was a unanimous decision by the Monetary Policy Committee.
The RBI also lowers its growth guidance for the Indian economy for the current fiscal year to 6.5 per cent from 6.7 per cent. The RBI Governor says uncertainties remain high in the wake of the recent spike in global volatility.
However, highlighting those concerns, the RBI chief adds that India is vigorously engaging with the US on a foreign trade agreement. The statement comes on a day when the 26 per cent reciprocal tariff by the US against India kicks in.
Talking of trade turmoil – the United States imposes a 104 per cent tariff on China. US President Donald Trump had warned China that he would impose a 50 per cent additional tariff if China didn’t withdraw its retaliatory tariff. China responds with an 84 per cent retaliatory tariff on the US, escalating the already tense trade standoff. China also vows again to fight to the end if the US persists with its tariff moves.
The global markets remain on tenterhooks as Trump’s tit-for-tat tariffs kick in. In Asia, Japan’s Nikkei and Korea’s Kospi end with sharp cuts, but Chinese equities close higher. European markets also trade lower. And pre-market trade on Wall Street indicates a lower opening for US equities as well.
Back home, Indian equity markets end the day in the red, with the Sensex and the Nifty down half a per cent each. Of the fifty constituents of the benchmark Nifty 50, 32 stocks close with losses.
That’s all the time we have on today’s business news wrap. We will be back with more on Thursday.
