FREE EDUCATION

MPC highlights: 1. Repo rate unchanged at 6.50% 2. MPC maintains its stance of remaining focussed on withdrawal of accomodation 3. Positive for PSU banks, Real Estate sectors 4. 10 year Gsec yields declined by 6-7bps to 7.20% as an immediate impact 5. RBI allows pre-sanctioned credit lines by banks can be utilised through UPI. Positive for UPI platforms and will further enhance UPI scope

World Leaders on Banking Crisis, This Week: 1. President Biden: "Our banking system is safe" 2. US Treasury Secretary Yellen: U.S. banking system is "sound" 3. Fed Chairman Powell: Banking system is "strong" 4. Swiss National Bank: Problems of US banks "do not pose a risk of contagion for Swiss financial markets" 5. ECB's Lagarde: "Equipped to provide liquidity to financial system if needed" 6. French Economy Minister: "US bank failures pose no risk of contagion for European institutions" 7. Dutch Prime Minister Rutte: "Very unlikely we'll have a new banking crisis in Euro Zone" 8. German Chancellor: "The banking system in Europe is stable" Meanwhile, Credit Suisse sold for pennies on the Dollar and ~200 banks in the U.S. are facing the same risks of SVB. Now, Deutsche Bank, credit default swaps hit a 4-year high. The disconnect between leaders and reality is concerning.

Central Banks This Week: 1. European Central Bank: 50 bps rate hike 2. Swiss Central Bank: 50 bps rate hike 3. Federal Reserve: 25 bps rate hike 4. Bank of England: 25 bps rate hike 5. Australian Central Bank: 25 bps rate hike 6. Norway Central Bank: 25 bps rate hike Despite worries of a banking crisis, central banks around the world said inflation is their top priority. All of these central banks said future rate hikes may be needed.

Key updates and highlights today morning. Reading time: 4 mins 1. In a landmark share swap deal, UBS has acquired troubled Bank Credit Suisse at ~$2BN, valuing equity 60% lower from Friday's closing. The deal also entails complete write-down of risky AT1 bonds of CS worth $17 Bn. A crisis averted, but might have liquidity impact for the Banking sector. 2. The Govt has inked 27 MoUs on Friday to set the Specialty Steel PLI rolling. The PLI offers incentive of Rs 6322 cr for creating 25 Mn tonnes of new capacity and is expected get investment of Rs 30K cr over next 5 years. Positive for Steel stocks. 3. Delhivery: Vanguard bought 96 lakh shares (1.3%) worth Rs 310 cr at Rs 323/-, while Tiger Global sold 0.75% stake for Rs 177 cr. Entry of Vanguard is positive for the stock. 4. Biocon: Long term investor Arohi Fund (AHAN-I) sold 1.5% stake (1.89 cr shares) on Friday for Rs 380 cr at an average price of Rs 200.7. The stock closed down 7%. 5. India's power consumption rises 10% in Apr-Feb, surpassing planned supplies. Govt calls NHPC for reviving defunct hydro projects to meet summer demand. Stock in focus: NTPC 6. Jindal Steel & Power gets approval to manufacture India's first fire-resistant steel structures in Raigarh, CH which can withstand 600°C for 3 hours. Positive. 7. Hindenburg fallout: Adani Enterprises suspends planned work on Rs 35000 Cr petchem project in Mundra (Guj) as it focuses on resources to consolidate operations. 8. GoI aims to cap sales of Fertilizer subsidy for farmers based on digital records or land holding in 7 key districts states. Caution on Fertilizer stocks. 9. Oil Ministry accepts all major Kirit Parikh panel recommendations on gas pricing, to be presented to Cabinet soon. Stocks to watch: IGL, GSPL and MGL (positive). 10. Mega textile parks to be set up in seven states. PM Mitra parks to boost India's $100 bn textile export goal, says industry.

RBI Raises repo rate by 25 basis points Repo rate at 6.5% RBI Governor: To remain Focused on the withdrawal of accommodation Further Adds - Monetary policy was confronted by unprecedented contraction of economic activity followed by a surge in global inflation