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MOSL: Morning India (7/February/20): 1. EcoScope (RBI maintains status quo); 2. Financials; 3. UltraTech Cement; 4. Cement; 5. Sun Pharma; 6. Eicher Motors; 7. Hero Motocorp; 8. NMDC

MOrning India (7/February/20): 1. EcoScope (RBI maintains status quo); 2. Financials; 3. UltraTech Cement; 4. Cement; 5. Sun Pharma; 6. Eicher Motors; 7. Hero Motocorp; 8. NMDC

 

Today’s top research theme

EcoScope: RBI maintains status quo

• RBI kept repo rate unchanged at 5.15% in its monetary policy meeting yesterday. While inflation forecasts for 4QFY20/1HFY21 were revised upwards, growth estimate for FY20 was unchanged at 5%. FY21 growth has been pegged at 6%.
• The highlight of the policy yesterday was not the interest rate but a host of other non-interest rate measures including durable liquidity for banks through long-term repo transactions for 1-3 years at 5.15% (repo rate), abolishment of the obligation to maintain CRR in incremental loans provided to certain sectors for six months.
• Overall, how these measures will lead to better transmission in the real economy remains unclear as the banking system has been in massive surplus for the past many months and further boost to supply is unlikely to revive growth.

Piping hot news

Sun shines for Adani as Total buys 50% in solar business for $510 million

French energy giant Total SA has agreed to acquire 50% in Adani Group’s solar assets for $510 million, in one of the biggest transactions in India’s clean energy industry. Total will own half of a joint venture company that will house the solar assets of Adani Green Energy Ltd, which has a 2,148MW solar project portfolio across 11 states, the companies said in a joint statement on Thursday. Adani Green Energy will own the balance 50% in the joint venture.