RBI LIQUIDITY INJECTION
From Wednesday, banks can't queue up daily to borrow from RBI
The Reserve Bank of India will discontinue daily variable rate repo auctions from June 11 due to surplus liquidity in the banking system, which has averaged ₹2.75 lakh crore in June. This decision aligns with the RBI's target of maintaining surplus liquidity near 1% of net demand and time liabilities.
Big 4: Drivers that will power India's economy
India's FY25 GDP growth slowed to 6.5%, a four-year low, despite a strong March quarter. The nation remains the fastest-growing major economy, driven by government spending, rural consumption, and low interest rates. While urban demand is currently weak, tax relief and easing inflation are expected to boost consumer spending and overall economic growth in the coming year.
Bajaj Finance, other NBFC stocks outperform bank stocks after RBI bazooka. Should you still buy?
Emkay Global views the RBI’s move as a clear positive for NBFCs, especially those heavily reliant on bank borrowings and with a sizable fixed-rate loan portfolio, such as gold and vehicle financiers. These firms are expected to benefit from reduced funding costs and improved net interest margins (NIMs) in H2FY26 and beyond.
Nifty Bank rallies to record high, crosses 57,000 mark as RBI policy support lifts financial stocks
Nifty Bank hit a record high above 57,000 as the RBI’s surprise 50bps rate cut and CRR reduction boosted financial stocks. Private and mid-sized banks led gains amid improved liquidity and credit growth outlook. Positive U.S.-India trade talks and strong global cues further supported the broader market, lifting Nifty 50 and Sensex on Monday.
Crorepati house! EMIs on Rs 1 crore home loan may drop to Rs 68,000 after RBI’s 50 bps rate cut
The Reserve Bank of India's significant 50 bps repo rate cut to 5.5% in June 2025 is poised to boost India's housing market by lowering home loan EMIs. This move, coupled with a CRR reduction, injects liquidity into the banking system, potentially making homeownership more accessible, especially in the affordable and mid-income segments and Tier 2 & 3 cities.
RBI's 50 bps rate cut surprise: Two economists who beat the crowd are back with another call
RBI rate cut: Soumya Kanti Ghosh and Debopam Chaudhuri foresee more rate cuts. This contrasts with most experts anticipating the end of easing. Chaudhuri expects additional cuts through FY26, aligning with the US Federal Reserve. He anticipates a 25 bps cut in October 2025 and February 2026. This would bring the repo rate to 5%, contingent on inflation staying below 4%.
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RBI’s unexpectedly deep rate cut and the road ahead
The RBI’s sharper-than-expected 50 bps rate cut and 100 bps CRR reduction aim to boost credit growth and economic activity amid subdued inflation. With a shift to a neutral stance, the central bank signals flexibility to either pause or ease further depending on future data, offering tactical opportunities across rate-sensitive sectors.
Stock picks of the week: 5 stocks with consistent score improvement and return potential of more than 28% in 1 year
While the bulls were clearly making a comeback, the RBI’s move to cut both the repo rate and CRR has just helped them some more. Now, there are two schools of thought on the RBI move. One says a cut in interest rate suggests the economy is slowing and requires a push. The other says that boosting liquidity and giving cash in people’s hands, when done in time, aids a faster recovery. Whatever be the case, the one thing to keep an eye on is inflation. Our selected stocks for today depict a strong upward trajectory in their overall average score which is based on five key pillars: Earnings, fundamentals, relative valuation, risk, and price momentum. This implies that there has been a significant improvement in their market outlook in the given time frame.
RBI’s Rs 2.5 lakh crore masterstroke! Why bank stocks are smiling despite NIM pain
The RBI’s decision to cut CRR by 100 bps in four phases starting September 6, 2025, is set to inject ₹2.5 lakh crore into the banking system. Analysts say this will boost liquidity and help counter the NIM pressure from declining lending rates.
RBI MPC opts for a 'jumbo' rate cut to bring repo rate down to 5.5%, switches to neutral gear
RBI MPC 2025 Repo Rate Change: The Reserve Bank of India's Monetary Policy Committee (MPC) reduced the repo rate for the third consecutive time this year, led by Governor Sanjay Malhotra. The decision, made on May 5, 2025, follows previous 25-bps cuts in February and April, driven by a decline in retail inflation to 3.16% in April, prompting banks to lower lending rates.
HDFC Bank shares jump 1.5% to hit fresh 52-week high; here’s why
HDFC Bank shares surged to a 52-week high following the RBI's unexpected interest rate cut and CRR reduction. The Bank Nifty also hit a record high, with other bank stocks rising. While NIM concerns arose, the CRR cut is expected to inject liquidity and boost economic growth.
Bajaj Finance shares rise 6% post RBI outcome. Why NBFC stocks will benefit more than bank stocks
Bajaj Finance shares saw a surge following the Reserve Bank of India's repo rate cut. The rate reduction is expected to benefit NBFCs more than banks due to their borrowing structures. Market experts believe NBFCs will gain significantly in this rate cut cycle. The RBI also reduced the Cash Reserve Ratio to inject liquidity into the banking system.
RBI slashes rates by 50 bps: What it means for debt mutual fund investors
The MPC shifted its policy stance from ‘Accommodative’ to ‘Neutral,’ RBI Governor Sanjay Malhotra announced in his monetary policy speech. He also revealed that the MPC decided to reduce the Cash Reserve Ratio (CRR) by 100 basis points, lowering it from 4% to 3%.
Growth tops RBI agenda as outsized repo, CRR cuts buoy banks
In a surprise move, the Reserve Bank of India (RBI) slashed the policy rate to 5.5% and reduced the cash reserve ratio (CRR) to 3%, injecting ₹2.5 lakh crore into the banking system. Governor Sanjay Malhotra emphasized boosting growth, supported by a 5-1 vote from the Monetary Policy Committee (MPC).
Pick undervalued, high-quality stocks: Sonam Srivastava's 2025 playbook
Sonam Srivastava of Wright Research suggests a cautiously optimistic outlook for the market, highlighting the strength in small and mid-cap stocks. She recommends focusing on sectors like industrials, capital goods, and consumption, while advising a balanced approach to investing. Investors should gradually build positions in high-quality stocks, considering diversification and a core-satellite approach for new entrants.
Make the bright spot brighter: India is Asia’s top investment bet, but jobs & reforms remain key hurdles
Amidst global economic uncertainty, India stands out as Asia's prime growth opportunity, fueled by recovering domestic demand, supportive policies, and rising services exports. While trade tensions linger, India's focus on global value chains and manufacturing, coupled with infrastructure investment, positions it for strong growth. However, comprehensive reforms are crucial to address job creation and maintain stability.
‘India can unlock big FDI gains, if…’: Raghuram Rajan shares simple idea to attract foreign investment as firms exit China
Raghuram Rajan suggests India can attract foreign investment. Multinational firms are reviewing supply chains. India must offer stable policies and reforms. Rajan advises against relying on subsidies. He emphasizes proactive reforms for global investors. Bilateral agreements can compensate for lack of major trade deals. Rajan sees Trump's message to Apple as negotiation. China may help control global inflation.
India bond yields set to post third straight monthly fall in May
Indian government bond yields are decreasing in May. This marks the third consecutive monthly decline. The Reserve Bank of India is injecting liquidity. Expectations are for further monetary policy easing. New Delhi will sell benchmark bonds. This will increase liquidity. Economists estimate India's growth data for January-March. The Reserve Bank of India is expected to cut rates on June 6.
Interest rates, dollar sales boost RBI income by 27%
RBI's FY25 net income surged by 27% due to higher global interest rates and dollar sales, enabling a record surplus transfer to the government. Increased returns from foreign currency assets and forex transactions significantly contributed to this rise. The central bank also strategically increased its gold holdings to bolster its asset mix and manage risks.
Govt’s grip on state-run banks cuts RBI’s risk
The Reserve Bank of India (RBI) is reducing capital buffer requirements for public sector banks (PSBs) due to government ownership, which lowers risk exposure. PSBs are considered safer due to the government's financial backing, demonstrated by capital infusions exceeding ₹3.1 lakh crore.
Fiscal deficit of govt to ease by 20 to 30 bps to 4.2% of GDP by RBI's bumper dividend: SBI
State Bank of India reports that the central government's fiscal deficit could decrease by 20-30 basis points to 4.2% of GDP due to a significant dividend transfer from the Reserve Bank of India. This unexpected revenue provides the government with flexibility to either reduce the deficit or increase spending in key sectors.
RBI’s March forex buys hit 4-year high to boost banking liquidity
The RBI’s net forex purchases surged to $14.4 billion in March—its highest since June 2021—following $20 billion in buy-sell swaps. These actions aimed to infuse rupee liquidity into the banking system and manage forward dollar positions, helping support monetary policy transmission amid a strengthening rupee.
‘On rates, it’s status quo or cuts; concerned about banks’ mis-selling of insurance’: RBI governor Sanjay Malhotra
RBI Governor Sanjay Malhotra emphasizes India's economic resilience and commitment to managing rupee volatility without targeting specific rates. He highlights the importance of real interest rates for depositors and the central bank's focus on customer protection and cybersecurity. The governor also addresses concerns about UPI concentration and governance lapses in banks.
RBI governor rules out rupee targeting, focuses on volatility control
RBI Governor Sanjay Malhotra announced a review of bank licensing and insurance product distribution to address mis-selling concerns and strengthen the banking sector. The central bank aims to balance growth and stability, projecting a 6.5% GDP growth while managing inflation and maintaining a robust financial system.
Indian lenders seek overnight liquidity ops, easier reserve norms from RBI, sources say
Indian lenders are advocating for the Reserve Bank of India (RBI) to reinstate overnight liquidity management operations and ease cash reserve requirements. Banks are seeking a shift from the current 14-day variable repo to fixed-rate overnight instruments and a reduction in the daily maintenance of the cash reserve ratio.
Solid & liquid: RBI lets cash flow into the financial system
The Reserve Bank of India, under Governor Sanjay Malhotra, is relaxing lending rules. This aims to boost economic growth as inflation cools. Policy rates have been cut, and norms for retail lending have been eased. Credit growth had slowed, but these measures are expected to accelerate it. The RBI is also injecting more liquidity into the banking system.
RBI to slow cash boost after $100 billion injection; surplus transfer eyed, say investors
The Reserve Bank of India is likely to curtail liquidity infusion after injecting Rs 8.57 lakh crore into the banking system since December, anticipating a substantial surplus transfer to the government. Economists predict the surplus transfer could range from Rs 2.5 to 4 lakh crore. Bond market participants foresee a pause in the recent price rally, with yields expected to stabilise.
Govt set for up to Rs 2.75 lakh crore bonanza from RBI
India's banking system is poised for a significant liquidity surge, potentially reaching ₹6 lakh crore, fueled by a substantial dividend payout from the RBI to the government. This influx, driven by robust RBI earnings from foreign exchange reserves and dollar sales, is expected to influence interest rate dynamics, potentially lowering the weighted average call rate.
RIL, Sun Pharma drag Sensex marginally lower, Nifty below 24,450
Indian benchmark indices opened flat on Tuesday, with the BSE Sensex down 69 points and the Nifty50 slipping 18 points. Gains in M&M and Bharti Airtel were offset by losses in Reliance Industries and Sun Pharma. Nifty Pharma dropped significantly as U.S. President Donald Trump signed an executive order impacting drug manufacturing.
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