RBI MPC Outcome Today, Zomato's Name Change, Samsung Workers' Protest | Rise With Profit
NDTV Profit Podcasts: From the RBI MPC meeting outcome to India's plans to deal with Trump tariffs, here's everything you need to know at the start of your day.
Good morning and happy Friday to you!
This is the daily morning update from NDTV Profit. Over the next few minutes, we’ll tell you everything you need to know, so you can spend a little more time planning your weekend.
Listen to this as a podcast here.
It’s all about the rate decision of the Monetary Policy Committee of the Reserve Bank of India later today. Governor Sanjay Malhotra will preside over his first meeting as head of the MPC. The context is set — the RBI has taken measures to ease tight liquidity conditions and Finance Minister Nirmala Sitharaman’s Budget has laid out the government’s plan for the new year. As this is the last MPC meeting of the current financial year, the central bank’s projection for economic growth and inflation in the new year will be key to watch. This will determine whether the MPC feels the need to cut rates to spur growth, or indeed if there is scope to do so, given that inflation has not yet moved lower to the target of 4%.
Out of 28 economists polled by Bloomberg, 24 expect a rate cut of 25 basis points and one expects a steeper cut of 50 basis points. Liquidity, meanwhile, continues to remain in deficit, so additional measures to bolster it could be in the offing.
On the global stage, US markets ended mixed ahead of the keenly watched payroll data that will be out tonight. The Dow Jones Industrial Average lost 0.3%, while the S&P 500 and the Nasdaq climbed 0.4% and 0.5%, respectively. Amazon’s shares dropped sharply in post-market trade after the company reported a weak performance in its cloud computing unit and because of a lower-than-expected forecast for revenue and profit in the first quarter.
Meanwhile, the number of Americans filing new applications for unemployment benefits increased moderately last week, consistent with steadily easing labour market conditions, though opportunities for those out of work are becoming more difficult to find.
Initial claims for state unemployment benefits rose 11,000 to a seasonally adjusted 219,000 for the week ended Feb. 1. That number was pegged at 213,000, according to a Reuters report.
In other international news, the Bank of England’s Monetary Policy Committee voted to cut interest rates to a 19-month low, but struck a hawkish tone by signalling that only two more reductions are needed to bring inflation back to the 2% target.
In the Asia Pacific region this morning, two of the three early risers have started in the red. The Nikkei 225 in Japan was lower by 0.6% last I checked. Meanwhile, the dollar index was at 107.7 and crude oil prices remain benign, with Brent Crude at below $75 to the barrel.
India's Plans For Trump Tariffs, Samsung Workers' Protest
In news back home, the Indian government is readying a plan to tackle the United States' tariff policies and various scenarios are being drawn up on potential impacts, according to sources. The Centre has asked key stakeholders within India Inc. for inputs on the possible negative and positive impacts of US President Donald Trump's tariff announcements. A blueprint could be prepared ahead of Prime Minister Narendra Modi’s upcoming visit to the US, and India is trying its best to leverage its existing relations with Washington.
In other news, around 500 workers of a Samsung Electronics factory near Chennai continued their protest for the second day on Thursday, opposing the suspension of three workers, according to NDTV. The protesting workers allege that the management is putting pressure on them to exit the union and join the pro-company committee, an accusation that Samsung denies.
In news that will be significant for Indian airline companies that use Boeing planes, the company said that it expects to deliver two aircraft a month, on average, this year and that delays will persist "for a while", amid ongoing supply chain issues that have slowed the capacity growth of Indian carriers.
The US aerospace giant, as you’re probably aware, is facing multiple challenges—including regulatory scrutiny related to safety concerns and a recent strike among some of its factory workers—which have hindered its aircraft production.
Zomato has approved a name change to Eternal Ltd., according to a notification to the exchanges. Its Founder and Chief Executive Officer Deepinder Goyal told shareholders that the change applies only to the company, not the brand or application. The stock ticker will change from ZOMATO to ETERNAL. The company’s corporate website will also shift from zomato.com to eternal.com.
There’s lots to take stock of on the earnings front with multiple Nifty 50 companies having posted results post market hours. But on Dalal Street, most attention will likely be on the RBI’s rate decision at the start.
