RBI Governor Urjit Patel May Resign : Reports
MUMBAI/BENGALURU: Reserve Bank of India Governor Urjit Patel may consider resigning from his post given a breakdown in relations with the government, TV channels reported on Wednesday, sparking a sell-off in the rupee and bonds. Television channels CNBC-TV18 and ET Now cited sources as saying that Patel could quit. The RBI and the finance ministry declined to comment. The government has invoked never-before-used powers under the RBI Act that allow it to issue directions to the central bank governor on matters of public interest, the Economic Times newspaper reported.
It said the government had sent letters to the RBI governor in recent weeks exercising powers under section 7 of the RBI Act on issues ranging from liquidity for non-bank finance companies, capital requirements for weak banks and lending to small- and medium-sized companies.
Section 7 says that 'the Central Government may from time to time give such directions to the Bank as it may, after consultation with the Governor of the Bank, consider necessary in the public interest', a statute that has not been used in independent India, according to the Economic Times.
The 10-year benchmark bond yield rose to 7.87 per cent from its previous close of 7.83 per cent.
The rupee fell to 73.99 to the dollar from 73.6750 on Tuesday, after touching 74.04, its lowest since October 15.
"It is difficult to believe that the RBI governor will resign because it is unprecedented and would look quite irresponsible and (an) immature step," said a senior trader at a foreign bank. "But it is quite worrisome to see the government trying to continuously interfere into the RBI's operations."
courtesy : ndtv.com
Let the Truth be known. If you read VB and like VB, please be a VB Supporter and Help us deliver the Truth to one and all.
Stock market mayhem wipes out Rs 12.87 lakh cr from investors' wealth
New Delhi (PTI): Equity investors' wealth eroded by Rs 12.87 lakh crore on Thursday as stock markets went into a tailspin, with the benchmark Sensex plunging over 3 per cent, pressured by a spike in crude oil prices due to increasing attacks on energy infrastructure in West Asia.
Investors have lost over Rs 37 lakh crore since the West Asia crisis erupted on February 28.
Snapping its three-day winning run, the 30-share BSE Sensex tanked 2,496.89 points or 3.26 per cent - its biggest single-day plunge since June 2024 -- to settle at 74,207.24, a level not seen since April 7, 2025. During the day, it dived 2,753.18 points or 3.58 per cent to 73,950.95.
The market capitalisation of BSE-listed companies dived sharply by Rs 12,87,273.89 crore to Rs 4,26,13,557.95 crore (USD 4.61 trillion) in a single day.
"Indian equity markets witnessed a sharp reversal today, breaking their three-day recovery rally and closing significantly lower, with benchmark indices declining by nearly 3.3 per cent.
"The sell-off was largely driven by a fresh escalation in geopolitical tensions in the Middle East, where renewed strikes between Israel and Iran targeting critical oil and LNG infrastructure have reignited concerns over global energy supply disruptions," Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm, said.
Brent crude, the global oil benchmark, soared 6.21 per cent to USD 114 per barrel.
"The sharp rise in crude oil prices, driven by escalating tensions in the Middle East and concerns over supply disruptions, pushed prices closer to the USD 119 mark, adding to the negative sentiment. Furthermore, a hawkish stance from the US Federal Reserve, along with continued foreign institutional investor outflows, weighed heavily on market sentiment," Ajit Mishra – SVP, Research, Religare Broking Ltd, said.
From the 30-Sensex firms, Eternal, Bajaj Finance, Mahindra & Mahindra, HDFC Bank, Larsen & Toubro and InterGlobe Aviation were among the major laggards.
HDFC Bank dropped 5.13 per cent after its chairman, Atanu Chakraborty, resigned, citing ethical concerns.
BSE MidCap Select index tumbled 3.34 per cent and SmallCap Select index dropped 2.77 per cent.
All sectoral indices ended lower. Auto dived 4.07 per cent, followed by realty (3.79 per cent), financial services (3.66 per cent), consumer discretionary (3.62 per cent), BSE Top 10 Banks (3.53 per cent), industrials (3.49 per cent), services (3.44 per cent), BSE Focused IT (3.41 per cent) and consumer durables (3.38 per cent).
A total of 3,192 stocks declined, while 1,051 advanced and 161 remained unchanged on the BSE.
_vb_62.jpeg)
