The Reserve Bank of India’s (RBI’s) move to pause rate cuts will hit the beleaguered real estate and auto sectors hard. These sectors were expecting another rate cut by the central bank to help revive sagging consumer demand.
CEOs said benefits from the previous rate cuts are yet to play out completely and the real estate industry is still reeling from the liquidity crisis as consumers are not coming forward to buy new houses or cars.
Real estate developers were expecting a rate cut of 50 to 100 basis points which would have provided a boost to the government’s recent initiatives to rev up the economy.
Reserve Bank of India (RBI) on Thursday (December 5, 2019) slashed its GDP growth forecast for 2019-20 to just 5% but left the repo rate unchanged at 5.15%, hinting the government should do the heavy lifting.
The National Highways Authority of India (NHAI) has decided to rework the next road monetisation offering to entice bigger domestic investors. It is learnt that the revamped Toll-Operate-Transfer (TOT) bundle will remove some road stretches, especially the lucrative ones, and will tweak the overall tenure of the project.
The Bharat Bond Exchange Traded Fund (ETF), a basket of bonds issued by government-owned enterprises, could see collections to the tune of Rs 10,000 crore, market experts said. The product has been crafted to cater to both wholesale investors ( pension funds, insurance companies and provident funds) and retail investors.
The returns on the 3-year ETF are expected to be in the range of 6.5-6.6% while that on the 10-year ETF could be approximately 7.5%-8%. The bonds will be available for two maturities, three years and 10 years. The first tranche will comprise AAA-rated bonds.
Coal India (CIL) is in talks with Russian coal company Vostok-Coal-Diskon to participate in the extraction of coking coal and its imports from mines in the Siberian districts of Russia, Coal India executives said.
VostokCoal-Diskon is developing coal extraction facilities at the Taimyr coal basin of Taymyr Peninsula in central Siberia. It has been exploring the area since 2016 and has recently opened two deposits that would touch peak capacity of 30 million tonnes a year.