Market Watch: What will be the impact of RBI’s QE plans on D-Street? | The Economic Times Podcast

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Market Watch: What will be the impact of RBI's QE plans on D-Street? | The Economic Times Podcast


Welcome to ETMarkets Watch, the show about stocks, market trends and money-making ideas. I am Atul P.M. and here are the top headlines at this hour.

Stocks jump on RBI’s dovish policy, govt bond-buying plan
Rupee slumps to 4-month low on FII angst over RBI policy
Govt approves PLI scheme for air-conditioners, LED lights
Bharti, Dixon form JV to manufacture telecom gear, to apply for PLI
Oyo squashes bankruptcy rumors after creditor takes it to NCLT

Let us take a quick glance at what happened on the Dalal Street today.

The Reserve Bank of India’s monetary policy lifted the spirits of investors that had been sapped recently due to rising concerns over the second Covid wave.

The benchmark indices rose nearly 1 per cent after the central bank retained its growth outlook and announced a new bond buying plan to boost liquidity.

Rate-sensitive sectors were at the forefront of the gains in the stock market with Nifty Bank, Nifty Auto and Nifty Realty rising over 1 per cent each.

In the bond market, the optimism was palpable as yields dropped 4 basis points, while concerns over more liquidity saw the rupee tumble to over 4-month low against the US dollar.

ETMarkets’ Chiranjivi Chakraborty caught up with Lakshmi Iyer, CIO – Debt at Kotak Mutual Fund to make sense of today’s policy announcement.

Listen in!

The bond market’s reaction was a mixed bag to the supposed QE announcement by the RBI. What is your reading of the situation?

With the RBI hinting at more G-SAPs going ahead, where would you expect the 10-year yield to trade going ahead?

After the policy, how should debt MF investors rejig their portfolio, if at all?

Moving on!

Asian markets ended on a mixed note, while the European markets were largely negative in the first few hours of trade. US stock futures were mildly positive, hinting at firm start to US equities later in the day.

That’s all for now. Do check out ETMarkets.com for all the news, market analysis, investment strategies and dozens of stock recommendations. Enjoy your evening!



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