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Sensex Tanks, RBI Monetary Policy et al

Professor of Financial Economics and Part-time Value Investor, Transfin.
Feb 5, 2018 12:48 PM 1 min read

Sensex continued downward spiral with drop of 300 pts at close of play today driven by LTCG tax reintroduction, fiscal slippage, bond yield increases, and US macro concerns; RBI to announce latest monetary policy on Wednesday, consensus points towards rate hold with a hawkish view; Maruti Suzuki chief Kenichi Ayukawa says future strategy is not only aimed at EV as that is ecosystem driven; JSW Steel, Tata Steel, and management backed by a PE, submitted bid to acquire Bhushan Steel; US to announce Services and Manufacturing PMI for Jan on Monday and initial jobless claims on Thursday; Apple Music to overtake Spotify in US paid subscribers ahead of the latter’s anticipated IPO.

End of Day Wrap-up (Monday / February 5, 2018) #UnionBudget2018 #LongTermCapitalGainsTax #Sensex #RBI #MarutiSuzuki #JSW #Steel #Bhushan #NCLT #US #PMI #Apple #AppleMusic #Spotify #Transfin

Editor's comment: Investors sentiment remained weak on Monday as Sensex continued downward spiral with drop of 300 points to 34,757 and Nifty fell 94 points to 10,666, on back reintroduction of Long Term Capital Gain tax, fiscal slippage and fear of rate hike by the US Federal Reserve.


RBI is all set to announce its latest monetary policy on Wednesday. The Monetary Policy Committee is likely to hold the repo rate unchanged, for the third time in a row at 6% on back of increasing inflationary pressures, rising oil prices and government's plans to raise crop support price.