Rates in India on Hold, RBI Signals Improving Economy

Mukesh Buch
04 Aug, 2015
New York City

The Reserve Bank of India keeps repo rate unchanged at 7.25%. Hero MotoCorp quarterly profit soared 33%. Britannia net surged 67% on 13% increase in revenues. RCap plans to sell its multiplexes business to Carnival Cinemas.

[R]6:00 PM Mumbai – The Reserve Bank of India keeps repo rate unchanged at 7.25%. Hero MotoCorp quarterly profit soared 33%. Britannia net surged 67% on 13% increase in revenues. RCap plans to sell its multiplexes business to Carnival Cinemas.

Market indexes in India traded higher after Reserve Bank left reference rate unchanged and said economy is gradually improving.

Reserve Bank of India left repo rate steady at 7.25% and cash reserve ratio at 4% and said the outlook for economic growth is improving gradually.

RBI retained its projected annual GDP growth rate at 7.6% and target inflation rate at 6% by January 2016 and the central bank hinted it may lower inflation target to 4% in the next two years.

Rupee strengthened 29 paisa to 63.75 against one U.S. dollar.

The Sensex Index dropped 115.13 or 0.4% to close at 28,071.93. The CNX Nifty fell 26.15 to 8,516.90.

Gainers & Losers

Bharti Airtel Limited decreased 1.3% to ₹413.70 after the largest wireless services provider agreed to acquire financial solutions firm YTS Solutions for an undisclosed amount.

The company added estimated net profit in the first-quarter to grow by 5.3% to ₹1,321.60 crore compared to₹1,255 crore in the previous quarter.

Britannia Industries Ltd increased 1.3% to ₹3,177.40 after net in the first-quarter surged 66.9% to ₹190 crore.

Net revenues in the quarter jumped 13% to ₹2,003 crore.

BGR Energy Systems Limited surged 11.6% to ₹138.80 after net in the first-quarter climbed 24.5% to ₹11.44 crore.

Net sales in the quarter soared 41% to ₹894.07 crore.

Hero MotoCorp Limited dropped 2.7% to ₹2,624.25 after net in the first-quarter soared 33.3% to ₹750.34 crore.

Total revenues in the quarter fell 1.2% to ₹6,955.26 crore as the vehicle maker struggled to increase market share in rural areas.

Indiabulls Real Estate Limited soared 4.5% to ₹64.55 after net in the first-quarter soared 133.4% to ₹90.68 crore.

Net revenues in the quarter climbed 20.5% to ₹751.34 crore.

Monsanto India Limited declined 2.4% to ₹3,219.20 after net in the first-quarter dropped 11.6% to ₹62.79 crore.

Net sales in the quarter edged up 0.2% to ₹259.83 crore.

Redington (India) Limited fell 0.7% to ₹116.55 after net in the first-quarter increased 5.5% to ₹81.15 crore.

Net sales in the quarter gained 5.8% to ₹7,569.59 crore.

Reliance Capital Limited edged up 0.4% to ₹393.25 after the financial services provider said its subsidiary Reliance MediaWorks plans to sell its multiplexes business to Carnival Cinemas about ₹700 crore.

Tamilnadu Petroproducts Limited soared 12.9% to ₹21.50 after net in the first-quarter surged 1412.1% to ₹4.99 crore.

Net revenues in the quarter plunged 18.4% to ₹227.46 crore.