The stock market started the new financial year on a positive note hitting Sensex of 39,000 for the first time overtaking its earlier all-time high of 38,989, hit in August last year. While market watchers are busy gauging the road ahead, News Today brings you the biggest happenings this financial new year week that could impact the market.RBI rate cut
Market analysts expect that the Reserve Bank of India will add to its surprise February rate cut this week to boost growth. The RBI may cut key lending rates by another 25 basis points on 4 March to boost economic activities amid fears of global slowdown impacting domestic growth prospects, experts said.
A back-to-back cut in interest rate would provide relief to borrowers in the election season. The six-member Monetary Policy Committee (MPC) headed by RBI Governor Shaktikanta Das will meet for three days in Mumbai and announce the decision on interest rate on 4 April.
Govt to borrow Rs 4.42 lakh crore
The government is looking to raise Rs 4.42 lakh crore through market borrowings in the first half of 2019-20, finance secretary Subhash Chandra Garg said on 29 March.
“The government will raise Rs 17,000 per week for 26 weeks,” Garg said. The borrowing planned in the April-September 2019 period is nearly 54 percent higher than the Rs 2.88 lakh crore borrowed in the same period in the financial year 2018-19. The government’s gross borrowing for the year is pegged at Rs 7.10 lakh crore, while net borrowings are seen at Rs 4.23 lakh crore.
India’s 1st RE investment trust
Embassy Office Parks, the country’s first real estate investment trust (REIT), launched by Blackstone and Embassy Group, will make a debut today. The issue, which opened for subscription during March 18-20, was subscribed 2.57 times at the end of the three-day bidding process, helping the firm raise Rs 4,750 crore.
According to the exchange data, the issue received bids for 18,34,76,000 units against the total issue size of 7,12,56,400 units. The issue was in the price band of Rs 299-300 per unit.
What will get costlier?
With the beginning of the new financial year today, here are things that will get costlier.
| Going up |
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Cars
Tata Motors, Jaguar Land Rover India and Toyota Kirloskar Motors have announced that they will be increasing the prices of their cars from 1 April and other manufacturers are expected to follow suit. A hike of up to 4 per cent is likely. Automobile running cost
From 1 April, the prices of automotive fuels – CNG, PNG, petrol and diesel will be increased. It has been learned that the natural gas prices may go up by up to 18 per cent, resulting in hikes of PNG and CNG prices. This will result in increase in transportation cost. With increasing oil prices, it is likely that the fuel prices may go up in coming days.
Air travel
In coming days air tickets may cost more as the government has asked airlines to increase the passenger service fees (PSF). If this gets approved then the same will taken from the passengers. |
What is getting cheaper?
Here are things set to become cheaper from today
| Coming down |
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Mutual funds
Equity-oriented mutual funds are set to get cheaper from Monday. With new fee slabs that investors pay to remain invested in mutual funds setting in, the dynamics for the mutual fund industry is set to change. Equity schemes with bigger assets under management will become cheaper, while investors will have to pay a higher cost for the smaller ones.
Real Estate
Starting today, GST Council has slashed tax rates for under-construction flats in an affordable category to 1 per cent. GST rate on other categories has been reduced to 5 per cent from the earlier 12 per cent. Also, you will not have to pay any income tax on notional income from second house. In case the taxpayer has more than two properties which are self-occupied, then notional rent would need to be computed on the third and additional properties and offered to tax.
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