BANKNIFTY
NOTE: IF IT GO DOWN
SELL
STOP LOSS : 26383
TARGET 1 : 25838
TARGET 2 : 25801
TARGET 3 : 25729
TARGET 4 : 25511
Event of the week
RBI and the government are now aligned to lubricate the economy with liquidity. Setting up a committee to reconsider the PCA norms is a big positive for the sector, as this would enable a large part of the 11 banks to come to the market and lend, which will further ease the liquidity concerns. This meeting was historic, as it gave a clear direction and intent that no matter what, India’s financial system is robust enough to withstand any crisis. Now it is up to the stock market when and how it w ..
Seven hours out of nine spent on the Reserve Bank of India (RBI) board meeting on Monday were taken up by presentation only, news agency ANI has quoted a board member as saying. "We attended the Monday meeting with complete preparation and were not tense. It was an intellectual debate and the meeting was intellectually stimulating," said the member, who didn't want to be identified. Announcements following the marathon board meeting failed to calm investors, as the Street expected implementation of the proposed measures to take time.
Here are 10 things to know about the RBI board meeting
The RBI board, in its statement after the meeting, advised the central bank to act to support small businesses and give banks more time to step up capital norms. It also agreed to form an expert committee to look into whether the RBI reserves are adequate; the Centre has pushed for access to surplus reserves built up by the central bank.
The stock markets tumbled around 1 per cent the next day amid a selloff across sectors, breaking their three-day rising spree. The Sensex ended 300 points lower at 35,474 while the broader Nifty settled at 10,656, 107 points - or 1 per cent - lower from its previous close.
"The board meeting was chaired by the RBI Governor (Urjit Patel) and attended by four deputy governors. One of the deputy governors NS Vishwanathan gave the presentation on behalf of the RBI," said a source aware of the developments, according to ANI.
"The presentation was made on Basel norms, MSME (micro, small and medium enterprises) sector and Economic Capital framework. The RBI presentation was purely on the database," he said.
"After the presentation, discussion took place pointwise," the agency quoted another source as saying.
Asked whether there was any tension or a heated argument between the Centre and the RBI representatives, he said, "After seven hours of a high-level presentation, we discussed our agenda and finally after two hours the meeting ended in very cordial manner."
"We can say that speculation in the media for the last 15 to 20 days will stop now, but we can't say that the differences are over. The decisions taken were commonly agreed upon, but on some issues like Prompt Corrective Action (PCA), economic capital, where a committee will take a decision, there are still some differences," the source said.
From the government side, Secretaries Department of Economic Affairs SC Garg and Department of Financial Services Rajiv Kumar gave presentations. The government nominees' presentation covered the overall current situation of the banking system, Non-Performing assets (NPAs), stressed assets and some sectoral issues like MSME's etc., according to the ANI report.
The RBI's representatives had their own views and queries on the presentation made by the government nominees. Similarly, the government nominees shared their own views and queries on the presentation made by the deputy governor.
The central bank board is to meet next on December 14.