New Delhi: The Reserve Bank of India has raised the repo rate by 50 basis points to 4.9 percent, Governor Shaktikanta Das said, adding that inflation was likely to remain above the upper tolerance level for three quarters of this financial year.
He was speaking at a press conference after the end of the three-day monetary policy review meeting.
Though the RBI raising policy rates in the ongoing monetary policy committee meeting was a “no brainer”, as said by its Governor Shaktikanta Das in a recent interview, investors, however, awaited the actual degree of percentage hike before taking fresh positions and future course of action in the financial markets.
In early May, the RBI, in a surprise off-cycle meeting, hiked the repo rate by 40 basis points (bps) to 4.40 percent, amidst rising inflation concerns in the economy. The Repo rate is the rate at which the central bank lends short-term funds to banks.
Investors lose Rs 1.2 lakh crore as LIC shares tumble 20%
New Delhi: Those investors who had put their money in the initial public offerings of Life Insurance Corporation of India had experienced a heavy depreciation in their portfolio, as the shares of the insurance major have been tumbling ever since its exchange listing.
The government had offloaded 3.5 percent of its stake through the IPO route. The IPO valued LIC at Rs 6 lakh crore.
The company’s market capitalization went down to around Rs 4.8 lakh crore, which essentially means the investors have lost worth Rs 1.2 lakh crore recently.
The shares of the much-awaited LIC made a weak listing on the stock exchanges on May 17. It listed on the stock exchanges at a discount of 8.62 percent at Rs 867, from its IPO issue price of Rs 949.
Now the share price is at its all-time low of Rs 756, which is a decline of little over 20 percent from its issue price.