The two benchmark equity indices—the Nifty 50 and the S&P BSE Sensex—fell each trading day since the demonetization except for November 10 and November 22.
Equities gain Indian equities rose on October 4, 2016, the day of the RBI’s (Rerserve Bank of India) latest monetary policy announcement. The central bank’s cut of its repo rate had a positive effect on equities, with bonds rising initially along with the Indian rupee. Banking and telecom stocks were among major gainers during the […]
Importance of policy transmission Monetary policy transmission refers to the translation of monetary policy actions into the financial system via banking and trading channels. By changing the short-term interest rate—like the repo rate in India or the federal funds rate in the US—a central bank signals other banks to change their lending and deposit rates. […]
Indian equities fell on August 9, the day of the monetary policy announcement. Benchmark equity indices like the S&P BSE Sensex and the Nifty 50 fell 0.4%.
In its monetary policy statement released on April 5, 2016, the RBI (Reserve Bank of India) said that the GVA (gross value added) by the industry sector “accelerated in H2” primarily due to low input costs.
Asia ex-Japan countries such as China and India saw poor equity market performance in 2015, but Indian equities could be back on track in the medium term.
India manufacturing PMI fell to 50.3 in November India accounts for about 2.5% of the world’s GDP, and manufacturing activity accounts for ~17% of India’s GDP. According to Markit, the Nikkei India manufacturing index declined by 0.4 points to 50.3 in November, compared to 50.7 in October 2015. Although manufacturing was down, India’s GDP rose to […]
