Reserve bank of India headquarters in Mumbai | Photo: PTI
The six monetary policy committee (MPC) members agreed unanimously to a large cut to shield the economy from the pandemic and arrest a slowdown in demand. After OPEC+ in a record oil deal agreed to slash global output by 9.7 million bpd, Goldman Sachs said that oil prices would continue to fall in the coming weeks. Here is a snapshot of events which made it to the headlines today:
1. MPC members scrambled to protect demand, financial stability amid Covid-19
The MPC members suggested that the flow of finance should continue, and efforts should be made to preserve financial stability. The members observed that the pandemic had not destroyed the economy's production capabilities, and once the situation starts normalising, domestic demand would need to be stimulated without any loss of time. Read on...
2. OPEC+ deal 'historic yet insufficient', oil prices to fall: Goldman Sachs
Goldman Sachs said that a "historic yet insufficient" deal by major oil producers to cut output is unlikely to offset a coronavirus-led demand rout.
The Organization of the Petroleum Exporting Countries (OPEC) and its allies, a grouping known as OPEC+, said they had agreed to reduce output by 9.7 million barrels per day (bpd) for May and June to stem a slump in prices. Read full story here:
Passenger vehicle sales in India declined by 51 per cent in March as the 21-day nationwide lockdown due to the coronavirus
pandemic forced people to stay indoors. Read full story here
4. Mutual funds investing in debt funds see Rs 1.95 trn outflow in Mar
Mutual funds focussed on investing in fixed-income securities saw a massive outflow of Rs 1.95 trillion in March, after pulling out Rs 28,000 crore in the preceding month, mainly on account of withdrawal from liquid funds. Read full story here
5. SBI Cards slips 13%, hits new low; stock down 32% from issue price
Most individual categories that invest in fixed-income securities or debt funds saw outflows. However, overnight category managed to see positive inflow. Read full story here:
Shares of SBI Cards
and Payment Services slipped 13 per cent to Rs 516 on the BSE on Monday amid the buzz of lockdown being extended beyond April 14. The non-banking finance company's stock was trading at its lowest level since listing on March 16, 2020. With today’s fall, the stock has now fallen 32 per cent below its issue price of Rs 755 per share. Read on...