Top finance official’s tweet hints Centre, RBI set for fresh tussle
NEW DELHI: The stage is set for another showdown between the Reserve Bank of India (RBI) and the Union government with the Centre sticking to its ground on Friday.
Discussions are underway with RBI to decide the appropriate economic capital framework of the central bank, Subhash Chandra Garg, secretary of the department of economic affairs, said on Twitter.
The statement comes at a time when the government and RBI are at loggerheads over a range of issues, including norms regarding weak banks, the liquidity problem faced by nonbanking finance companies (NBFCs), as well as pressures on the central bank to transfer more of its surplus to the government.
The meeting of the central board of RBI on November 19 is likely to be stormy .
MUMBAI: Domestic benchmark indices ended on a negative note after a choppy session on Friday amid weak global cues as the US Fed hinted at a rate hike next month.
The 30-share Sensex fell 79.13 points, or 0.22%, to close at 35,158.55. The broader NSE Nifty lost 13.20 points, or 0.12%, to end at 10,585.20.
According to analysts, market was range-bound due to weak global cues. Investors are also awaiting Consumer Price Index (CPI) data on Monday, which is expected to come down slightly due to recent cut in fuel taxes and fall in oil prices.
Additionally, upcoming state elections will be a key trigger to monitor while fall in crude oil prices and bond yields along with appreciation in rupee will provide support to the market, they added.
In the Sensex pack, Bharti Airtel was the biggest loser, falling 2.45%, after Moody’s Investors Service placed the company’s rating on review for downgrade following low levels of profitability and expectation of weak cash flow. Among top losers that dragged down key indices were Infosys, Tata Consultancy Services, Reliance, State Bank of India, Tata Steel and ITC, falling up to 2.15%. On the other hand, Yes Bank was the top gainer on Sensex, rallying 5.49%, followed by Asian Paints, Adani Ports, Sun Pharma, Hero MotoCorp, HUL and Maruti, rising up to 3.79%.
Mid and small-cap shares outperformed larger peers as the BSE MidCap and SmallCap indices rose nearly 1% each.
Shares of aviation companies gained due to softening of crude oil prices. InterGlobe Aviation and SpiceJet stocks rose up to 3%.