Kiran Kumar K V, Faculty-Finance & Analytics, ISME
On a random day (to be precise 08-August-2019), I was browsing through Economic Times and found some news items interesting and attempting to convey something about the overall outlook on market.
First, RBI cut the repo rates by 35 basis points, which came as an absolute surprise to the market. But, the reasons quoted, need more attention – estimated GDP growth rate was brought down to 6.9% from the earlier 7%, boost the NBFC liquidity through reduced interest rates, as well as through lowered risk weights to retail lending and raising bank exposure limits for NBFC.
Second, Tata Steel Q1 net profits drop by 63%, while the company has called off its JV with a HBIS, its south east Asian subsidiary, broke its JV with ThyssenKrupp, European business partner and management openly stating, they’re trimming their capex plans, till economy revives.