Goyal further said that the policy rate hikes have largely reversed pandemic-time cuts but the real rate remains low enough not to hurt the growth recovery
The Reserve Bank of India’s move to hike interest rates in a bid to tame inflation has hit the infrastructure space adversely. Experts feel that monetary tightening will sit heavily on the shoulders of infrastructure comapnies, and asset quality issues will be a big drag.
Weak global market and RBI's move to hike interest rates have dragged the domestic market down, said Udayan Mukherjee, managing editor of CNBC-TV18. "The breakout trade is unwinding and the market is likely see a massive downside soon," he added.
Federation of Karnataka Chambers of Commerce and Industry expressed anguish over RBI's decision to increase the Repo and Reverse Repo rates by 50 basis points, in its mid-quarter review of the Monetary Policy today.
Koushik Chatterjee, Group CFO, Tata Steel said that it's important to have a much more concerted effort than just a rate hike if we don’t want to get into a growth paralysis in India.
In an interview with CNBC-TV18, Suresh Mahadevan, managing director and head of India Equities at UBS Securities, gave his reading on the market and sector-specific stocks.
Nifty has not been able to please most of the bulls or any of the bullish traders. Fear of some kind of a breakdown of the existing range in the market is rising. Today is a very critical weekly closing to watch out for.
Reacting on the rate hike, Rajiv Anand, CEO of Axis AMC, told CNBC-TV18 that the RBI cannot indicate that it is anywhere near a pause, especially given the fact that headline inflation is at 9%
Dr Samiran Chakrabarty, Head of Research at Standard Chartered Bank and Sajjid Chinoy, Asia Economist at JPMorgan, told CNBC-TV18 that prices of global commodities and primary food inflation may come down gradually; however, inflation is likely to peak around September-October and the RBI may need to hike rates in June again.
In the CNBC-TV18's special show India Tonight, Karan Thapar discusses a gamut of issues related to the RBI's monetary tightening.
In an interview with CNBC-TV18's Udayan Mukherjee and Mitali Mukherjee, Chetan Ahya, managing director of Morgan Stanley said that RBI is likely to hike policy rates by about 75 basis points by March 2012.
Sonal Varma, India Economist at Nomura Financial Advisory & Securities (India) Private Limited told CNBC-TV18 that the Indian economy cannot sustain growth of 8-8.5% without actually leading to inflationary pressures building up in the medium-term.
Market has witnessed a downturn on the first day of the week and all due to plunging tech stocks. Infosys fell 2% down, TCS lost 4% while HCL dipped by 2.5% dragging the indices down.
Most bankers feel that if inflation pressure continues to be the same way, then the RBI will be forced to hike the interest rates by 25 basis points in the next policy. In an interview on CNBC-TV18, Uday Kotak, vice-chairman and managing director of Kotak Mahindra Bank, said the RBI will keep hiking interest rates.
In an exclusive interview on CNBC-TV18, Arun Kaul, chairman of UCO Bank and TM Bhasin, chairman and managing director of Indian Bank shared their views on inflation and interest rate expectations.