INDIA BUSINESS UPDATE - RBI Hikes Repo, Reverse Repo Rates By 25 Bps; Sensex Slips 181 Pts

Tuesday, Jan 25, 2011 Click here for India Business Update Mobile Version LEAD STORIES RBI HIKES REPO, REVERSE REPO BY 25 BASIS POINTS RBI hiked the repo rate to 6.5% and reverse repo to 5.5%, a move that will make funds expensive for banks and may lead to a hike in interest rates. read more RBI POLICY SPOOKS BANKING STOCKS; SENSEX SLIPS 181 PTS Heavy selling in pivotals led by banks brought Sensex down by 181.83 points to end at 18,969.45. Nifty fell 55.85 points to settle at 5,687.40. read more TOP STORIES • RBI credit policy: 7% inflation by March-end • 'Battle against inflation to continue post March' • Unlikely to hike rates immediately: Bankers • Govt announces measures to curb black money • Additional Collector burned alive by oil mafia • RBI extends special liquidity measures till Apr 8 • RBI credit policy: Need to increase FDI inflows • Kalmadi says his removal as Games OC chief illegal • IDBI Bank Q3 net up 58% at Rs 454 cr • Sterlite Q3 net jumps 60% to Rs 1,101 cr on high sales • HUL Q3 net profit down 1.84% on higher input costs • Reliance Mutual Funds struggle; performance poor • Apollo gets shareholders nod to raise Rs 1,055 cr • Dec oil refinery output up 8.3% after a 4-mnth slump • Onion prices crash in Delhi, Maharashtra • India, Indonesia sign 18 trade pacts worth $15.1 bn • UK economy suffers shock contraction in Q4 • IMF ups world GDP forecast, retains India projection • Gates, Buffett to visit India to encourage philanthropy • Padma Vibhushan for Azim Premji, Montek Singh more stories TOP VIDEOS RBI Helpless To Tame Inflation Beyond A Point: D Subbarao, Governor, RBI Fiscal Deficit Needs To Be Brought Down: C Rangarajan, Chairman, PM's Economic Advisory Council The Lending Rates Have Run Up With A Big Lag, I See A Clear Transmission Of This Hike Into Lending Rates: Romesh Sobti, MD & CEO, IndusInd Bank AT A GLANCE BSE 18969.45 -181.83 NSE 5687.4 -55.85 TURNOVER Rs. 221,918 cr BSE CASH Rs. 3,576 cr NSE CASH Rs. 12,912 cr NSE F&O Rs. 205,430 cr BULLION GOLD 19820 -177 SILVER 41738 -603 CRUDE WTI 87.53 -0.34 BRENT 4349.41 -32.85 FOREX $ / Re 45.7 +0.03 £ / Re 72.818 +0.13 € / Re 62.134 +0.12 EVENTS 26-30 January World Economic Forum Annual Meeting, Davos, Switzerland 27 January Primary Articles Inflation By Commerce & Industry Ministry For Week To January 15 27 January CII Partnership Summit, Grand Hyatt, Mumbai 27 January CII-MoP Interactive Session On National Mission On Enhanced Energy Efficiency, Taj Mahal, New Delhi 27-29 January 2nd Global Economic Summit & Expo 2011 On Indian Small & Medium Enterprises, World Trade Centre, Mumbai 1-2 February 8th Annual Conference On Ports In India, Grand Hyatt, Mumbai 4 February Foreign Investment Promotion Board Meet EXPERT VIEWS "Indeed we did consider 50 basis point hike...its not as if it was straight-forward decision that fell out of some analytical model. It was a judgment call and ultimately we decided that we do 25 basis points." D Subbarao Governor, RBI "The battle against inflation, which we were hoping would end by March or April, would probably continue for some more months." Kaushik Basu Chief Economic Adviser "Immediately after a rate hike by RBI like this, and a very small hike, it need not necessarily translate into a hike in lending and deposit rates by banks. But there is certainly an upward bias in interest rates." O P Bhatt Chairman, SBI WATCH OUT The Firm Better accounting standards, minimum carve-outs, corporate preparedness and tax issues: Y H Malegam, India's most respected auditor and Chairman, NACAS speaks to 'The Firm' on the road to IFRS! SHOW TIMINGS Wednesday 5:30 pm CNBC-TV18 PROGRAMME SCHEDULE STOCKS & INVESTING INDIA EARNINGS PORTFOLIO