The fall in headline rate comes despite little change in food inflation levels that remained elevated at 7.9 percent in May
The yield on Commercial Paper issued by non-banking financial companies (NBFCs) eased 20-40 basis points, and that on debt issued by manufacturers by 30-35 bps.
The process for the change of regime in the state, which began with the rebellion of around 40 of 55 Shiv Sena MLAs under Eknath Shinde's leadership, got a boost after BJP leader Devendra Fadnavis met Koshyari on Tuesday night and asked him to order a floor test of the Thackeray government, claiming it had lost majority.
In September, CP issuances dropped to Rs 54,535 crore, from Rs 1.23 lakh crore in August and Rs 1.3 lakh crore in July.
The move to withdraw high-denomination notes is expected to dent immediate consumption in the medium-term, but will have a positive impact on growth and inflation in the long run, says Kumaresh Ramakrishnan, Head-Fixed Income at DHFL Pramerica Mutual Fund.
Rajesh Mokashi, MD & CEO OF Care Ratings said the H1 numbers were pretty good and the future depends on the macro issues and how the credit offtake improves from banks and bond markets.
The move toward marginal cost of funds methodology for interest rate on advances is aimed at ensuring faster transmission of changes in RBI policy rates to banks' lending rates
Forex - Yen boosted after better than expected core machinery orders, CP
State Bank of India today said its large corporate assets base registered a full 18 per cent growth in the second quarter compared to the previous fiscal, resulting in its loan book crossing the Rs 2-trillion-mark.
M&M Financial does not see a dip in its margins so far, but going forward, it may not be able to increase its rate to consumer and is likely to seek support from the manufacturers and dealers, says Ramesh Iyer.
Venugopal Dhoot, CMD, Videocon, says interest rates are expected to fall, domestic production will be taking place and IIP number will improve further and there was a time when IIP numbers were around 7-8 percent. Those times will come back.
The country is likely to see fewer bond issuances by companies this financial year because of the prevailing stagflation and high government borrowing, says Arvind Konar, head-fixed income, Almondz Global Securities. Stagflation is when inflation remains high despite a slowing economy.