EUR 120.00 For Business Accounts Only

MOSL: MOrning India (3/October/22): 1. EcoScope (MPC hikes the policy repo rate by 50bp to 5.9%); 2. Godrej Consumer Products; 3. Federal Bank; 4. CSB Bank; 5. Automobiles; 6. Financials; 7. Oil and Gas; 8. Rea

MOrning India (3/October/22): 1. EcoScope (MPC hikes the policy repo rate by 50bp to 5.9%); 2. Godrej Consumer Products; 3. Federal Bank; 4. CSB Bank; 5. Automobiles; 6. Financials; 7. Oil and Gas; 8. Real Estate

Today’s top research Idea

EcoScope: MPC hikes the policy repo rate by 50bp to 5.9%

• The RBI hiked its key policy rate (repo) by 50bp to 5.9% on 30th Sep'22. Cumulatively, the RBI has the hiked repo rate by 190bp. The rate hike decision was arrived at by a 5-1 majority, with Dr. Ashima Goyal voting for a 35bp rate hike.
• The RBI did not change its inflation forecast and seems confident about India's GDP growth. Our (revised) base case now is a 35bp hike in Dec'22, followed by another 25bp hike in Feb'23. It is, thus, very likely that the terminal rate during this hiking cycle can be as high as 6.5% by FY23-end.
• As we do not see India remaining isolated from a global slowdown, we expect further growth downgrades in the economy, especially for FY24.

Piping hot news

Windfall profit tax cut on domestic crude oil, diesel; scrapped for ATF

The government cut the windfall profit tax on locally-produced crude oil and diesel on Saturday, in line with a fall in international rates, and scrapped the levy on the export of jet fuel with effect from October 2. At the sixth fortnightly review, the government reduced the tax on domestically-produced crude oil to Rs 8,000 per tonne from Rs 10,500 per tonne. The levy on the export of diesel was reduced to Rs 5 per litre from Rs 10 per litre.