Infosys was the bellwether not just of IT industry but the whole stock market.
First one with results, It would set the pace every quarter, always ahead of estimates, sharing extensively they had analysts virtually eating out of their hands.
After 47 continuous quarters of delivering results above estimates, What happened to the famed Infosys and its management depth ?
The RBI with immediate effect has reduced the marginal standing facility (MSF) rate, at which banks borrow from it, to 9 percent from 9.5 percent - It will improve liquidity in the system
This is the second reduction in the rate since the 20 September mid-quarter monetary policy review, when it was lowered to 9.5 percent from 10.25 percent.
Interestingly the same rate was jacked up 2% in mid July to 10.25 per cent, to tighten liquidity in an attempt to curb volatility in the rupee-dollar exchange rate.
With this the RBI also announced that the bank rate will be adjusted to 9 percent with immediate effect
New 7 day & 14 Day tenor auctions i/o just overnight
The central bank also said it will provide additional liquidity through term repos of 7-day and 14-day tenor for a notified amount equivalent to 0.25 percent of net demand and time liabilities (NDTL) of the banking system through variable rate auctions every Friday, starting 11 October.
Earlier only overnight or 3 days (weekends) facility was available
Implications
1. Why sudden
- Either RBI Guv has a mind of his own and its showing or
- some other issues are there for which he is preparing for at double quick speed
- why reduce rates when inflation was the target ?
- last move was followed by Rupee depreciation , this time ??
2. It will improve liquidity & reduce borrowing costs
3. 7 day & 14 day repo will provide some certainty to the banks in the short run on their borrowing costs
4. Positive for the markets as of now
Foot note
The RBI injects about Rs 1.5 lakh crore into the system daily through the liquidity adjustment facility, the export credit refinance facility and the marginal standing facility.
Woman power showing ..the top Indian banks all headed by Ladies ...
latest being the behemoth State Bank of India !!!
Congrats Arudhati Bhattacharya! CEO, State Bank Of India.
Interestingly, SBI, ICICI Bank, Bank of India, United Bank of India, Allahabad Bank, Axis Bank, HSBC Bank All Are Headed By Women!
Cheers !!!!
Is this the end game for Financial Technologies too ???
i have followed FTIL growth story and the related one of Jignesh Shah very closely ...but to think this will end like this ...
how can someone sitting at the cusp of a virtual revolution , has successfully set up exchanges in India and many countries around the world , let go of it all like this
Through leverage of Technology , Guile & Passion to succeed Jignesh and his team came and conquered the Commodity scene in India and were on way to repeat it in Stocks and then it all unravelled :(
Its a clear out & out fraud , but hard to believe ...such a massive opportunity just about to be laid waste .....
Govt itself or through interested parties will take it all away , as clearly , there is an issue of severe deficiency or even absence of a basic stipulation - Fit & Proper !!
I think it will all end in an acquisition at a stupid rate to an existing institution the Satyam way !!
Reminds me of a famous Warren Buffett Quote
“Somebody once said that in looking for people to hire, you look for three qualities: integrity, intelligence, and energy. And if you don’t have the first, the other two will kill you."
The Business Gamut of FTIL ...such a nice spread across the financial channels ..now about to be laid waste ...Source FTIL Website
“Charlie (Munger) and I continue to believe that short-term market forecasts are poison and should be kept locked up in a safe place, away from children and also from grown-ups who behave in the market like children
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