Weakness in bank stocks seen short-lived

The Nifty Bank index declined 0.7% as against the 0.5% decline in the benchmark Nifty. Equitas Small Finance, AU Small Finance, Bank of Maharashtra, and Bank of India fell between 2% and 5%. Kotak Mahindra, Bandhan, Indian Overseas Bank, Canara Bank and Union Bank declined nearly 1.5% each.

RBI monetary policy: The liquidity lever may prove to be better price tamer

Whenever monetary authorities wanted to influence price levels for goods and services, they resorted to the popular tool — interest rates that make money more expensive or affordable. If inflation climbs, they raise the interest rate to dampen demand, and if growth slows, they reduce the cost of funds to fuel demand.

Bond yields soften as RBI move eases debt supply concerns

The RBI’s characterisation of a recent jump in food prices as transient also provided comfort to the bond market by setting a high bar for future rate hikes, treasury executives said. The yield on the 10-year benchmark closed at 7.15%, 2 basis points lower than previous close. Bond prices and yields move inversely. One basis […]