Ahead of its bi-monthly monetary policy review, the Reserve Bank of India (RBI) accepted 23,855 crore worth of bids in its bond buyback, 95% of the notified amount. Despite the acceptance, market enthusiasm was muted compared to January's exercises.
India is likely to increase bond buybacks and switches to longer maturities this fiscal year to lower its combined fiscal deficit, aiming for sovereign rating upgrades that have remained unchanged for nearly two decades. Economists suggest that maintaining the fiscal gap below 7% of GDP is crucial for rating agencies to consider an upgrade, with the government budgeting 2.
With future price pressures appearing benign and credit demand subdued, some economists are advocating for an outsized 50-basis-point rate cut by the Monetary Policy Committee (MPC). This move aims to revive the credit cycle and boost economic momentum, potentially counterbalancing uncertainty.
Federal Reserve officials are expressing concerns about the potential inflationary impact of tariffs. Governor Kugler anticipates larger price increases due to President Trump's tariffs in 2025, supporting steady interest rates if inflation risks persist. Presidents Schmid and Harker also highlighted the unsettling economic outlook and potential for tariff-driven price pressures.
Circle Internet Group witnessed a remarkable surge, with shares soaring up to 235% following its IPO. The stablecoin issuer and its shareholders raised nearly $1.1 billion amidst strong demand, pricing shares at $31 each. Trading at $94.
JP Morgan has increased the price target for Reliance Industries. The firm maintains an 'Overweight' rating. This is due to a better earnings outlook over the next two years. Reliance shares have faced pressure. This pressure is from earnings cuts in FY25. The retail business is key to the conglomerate's valuation. An improved growth outlook could drive multiples up.
In response to questions from Sens. Dick Durbin and Tammy Duckworth, Prime said that Level III trauma designations would be more appropriate at certain hospitals.
