News

RBI's decision on repo rate was a very strong trigger for the market: Gadia

by IBNS 16 Jan 2015, 08:13 am

Mumbai, Jan 15 (IBNS) : CapitalVia Global Research Limited founder and CEO Rohit Gadia on Thursday said the Reserve Bank of India (RBI)'s move to reduce the policy repo rate under the liquidity adjustment facility (LAF) by 25 basis points from 8.0 per cent to 7.75 per cent was a very strong trigger for the market.

"In its fifth bimonthly monetary policy review RBI governor stated that he will not wait even for the policy review meeting if he found all the factors under a comfortable situation, and here today he did what he said, and brought huge cheer to the market with a 25 basis point Repo rate cut. This rate cut comes as the very strong trigger for the market as this was the first Repo rate cut since May 2013 and the first rate cut for the year 2015, which was ahead of the scheduled date of monetary policy announcement onFebruary 3," Gadia said in a statement.

"After a rate cut announcement, Bank Nifty the banking share index, was up 4.2% or 789 points in early trade and touched a record high of 19410.reality stock are zoomed after this announcement on the hope that this action will certainly drag interest rate down and will help out the in reducing the interest burden on outstanding loans," Gadia said.