Money control Bureau
Equity benchmarks fell further as the Sensex was down 230.58 points at 27854.58 and the Nifty down 80.05 points at 8598.20. More than two shares declined for every share rising on the BSE. 10:20 am Interview: The Reserve Bank of India's interest rate cuts -- 1.5 percent since early last year -- has helped drive yields lower, enabling banks to book treasury profits and clean up their balance sheets, says Arundhati Bhattacharya, chairperson of State Bank of India. Speaking to CNBC-TV18, Bhattacharya said higher profits would enable banks to make provisions for stressed assets and extend more loans. Treasury gains are those that banks make on money kept in liquid securities such as g-secs. "In fact, we had recently written a note pointing out during the previous economic recovery cycle, 64 percent of bank profits were driven by treasury gains. This time, 16 percent of profits have been driven by treasury gains." Still, she said the RBI's accommodative stance, also with respect to its liquidity stance, would help boost monetary policy transmission.
10:00 am Market Check:
Equity benchmarks fell sharply after flat opening, dragged by index heavyweights Reliance Industries, HDFC twins, ITC. The 30-share BSE Sensex was down 163.34 points at 27921.82 and the 50-share NSE Nifty declined 57.80 points to 8620.45. About 1189 shares declined against 803 advancing shares on the BSE. Surendra Goyal of Citi says India has performed in-line with emerging markets this year. "Earnings recovery remains the key, and we remain constructive," he adds.
10:40 am Market Update:
Equity benchmarks fell further as the Sensex was down 230.58 points at 27854.58 and the Nifty down 80.05 points at 8598.20. More than two shares declined for every share rising on the BSE. 10:20 am Interview: The Reserve Bank of India's interest rate cuts -- 1.5 percent since early last year -- has helped drive yields lower, enabling banks to book treasury profits and clean up their balance sheets, says Arundhati Bhattacharya, chairperson of State Bank of India. Speaking to CNBC-TV18, Bhattacharya said higher profits would enable banks to make provisions for stressed assets and extend more loans. Treasury gains are those that banks make on money kept in liquid securities such as g-secs. "In fact, we had recently written a note pointing out during the previous economic recovery cycle, 64 percent of bank profits were driven by treasury gains. This time, 16 percent of profits have been driven by treasury gains." Still, she said the RBI's accommodative stance, also with respect to its liquidity stance, would help boost monetary policy transmission.
10:00 am Market Check:
Equity benchmarks fell sharply after flat opening, dragged by index heavyweights Reliance Industries, HDFC twins, ITC. The 30-share BSE Sensex was down 163.34 points at 27921.82 and the 50-share NSE Nifty declined 57.80 points to 8620.45. About 1189 shares declined against 803 advancing shares on the BSE. Surendra Goyal of Citi says India has performed in-line with emerging markets this year. "Earnings recovery remains the key, and we remain constructive," he adds.
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