Once more Indian
“FINANCE” Market tumbles on Wednesday after Reserve Bank has decreased Interest rate on “FINANCE CREDIT” Home Loans, Corporate loans and for ” FINANCING” Vehicles. The Reserve Bank has decreased the interest rate because of low expected rainfall. The expected rainfall will be considered below average on long-term basis.
Apart from that due to “FINANCIAL” trim in the market, some companies are going to default due to repayment problem. Unitech Company has lost more than 36% of share value and Jaiprakash Associates Group about 21% respectively. The Bombay Stock Exchange Sensex has dipped below 27,000 points and Nifty is near to 8,135 points. This selling spree will be there till June 15th.
Reserve Bank of India has reduced the Interest rate by 0.25% which will be a relief well established though late, automatically can help Home Purchasers, Auto Purchaser and for Corporate. The rate cuts are okay, but the Banks must pass these “FINANCE” cuts to individual and Corporates. Now people are facing the wrath of Service Tax hike from 12.50% t0 14% and an offer of 0.25% cut in Repo Rate means unreasonable. The Reserve Bank must cut the Repo Rate by 1%; reduce the Cash Reserve Ratio to 3.5% and Statutory Reserve Ratio by 21%. Let see what Reserve Bank Governor Raghuram Rajan has to say.