Equity markets are impacted more by the expectations of future monetary policy than the policy rate surprises on the day of announcement of the policy by the Reserve Bank, according to a working Paper titled, Equity Markets and Monetary Policy Surprises under the Reserve Bank of India Working Paper Series. According to a working paper prepared by RBI officials, the regulatory and development measures which are announced along with the monetary policy too impact the stock markets.”…equity markets are affected more by the changes in the market’s expectations of future monetary policy (path factor) than the policy rate surprise (target factor) which is in agreement with the conventional thinking that equity markets are forward-looking,” the paper said. The paper studies the impact of monetary policy announcements on the returns and volatility in the BSE Sensex by decomposing changes in Overnight Indexed Swap (OIS) rates on policy announcement days into target and path factors. The …
Posts in category Business Standard
IREDA surges 13% on heavy volumes after govt gives ‘navratna’ status (29-04-2024)
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Large currency market speculators in the US dollar futures further reduced their net short position but continued to stay at their most bearish level since June 2021, according to the latest Commitment of Traders (COT) data released by the Commodity Futures Trading Commission (CFTC). The non-commercial futures contracts of US dollar index futures, traded by large speculators and hedge funds, totaled a net position of -213 contracts in the data reported through April 23, 2024. This was a weekly reduction of 716 net short contracts.
Interglobe Aviation appoints Chief of Transformation (29-04-2024)
With effect from 29 April 2024
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Volumes soar at SBI Life Insurance Company Ltd counter (29-04-2024)
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IDFC First Bank slips as Q4 PAT slides 10% YoY to Rs 724 cr (29-04-2024)
IDFC First Bank dropped 5.23% after the private bank’s standalone net profit declined 9.75% to Rs 724.35 crore in Q4 FY24 as compared to Rs 802.62 crore recorded in Q4 FY23.
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ICICI Bank gained 2.45% to Rs 1,134.25 after its net profit increased 17.38% to Rs 10,707.53 crore on a 20.74% rise in total income to Rs 43,597.14 crore in Q4 FY24 as compared with Q4 FY23.
Barometers trade higher; Oil & gas shares rally for 4th day (29-04-2024)
At 10:25 IST, the barometer index, the S&P BSE Sensex, was up 502.58 points or 0.68% to 74,232.74. The Nifty 50 index added 105.40 points or 0.47% to 22,525.35.