RBI hikes interest rates, loan and EMI to be costly; Sensex fell 1300 points
New Delhi: In the wake of rising inflation, the Reserve Bank of India (RBI) today increased the repo rate by 4% to 4.40%. Now your EMI and loan are going to be expensive. The RBI called an emergency meeting of the Monetary Policy Committee on May 2 and 3 in which this decision has been taken, informed RBI Governor Shaktikanta Das in a press conference on Wednesday. The Monetary Policy meeting is held every two months. The first meeting of this financial year was held on 6-8 April last month. The next meeting was scheduled in June.
Meanwhile, the Indian stock markets reacted sharply to this unexpected hike of interest by RBI and shed some 2% in Nifty while the Sensex fell to some 1300 points. However, markets were already volatile and trading in a range due to the scheduled US Fed meeting tomorrow, where the US central bank is expected to raise interest.
LIP IPO - Policy holders quota filled more than one and a half times
Amid all the negative news, LIC IPO got a bumper opening on its first day on Wednesday. The country's biggest IPO ever opened for subscription at 10 am and till now it is 50% subscribed. The portion reserved for policyholders (10% of the total balance) has become oversubscribed. This means that 1.66 times bidding has been done under this quota.
16 crore 20 lakh 78 thousand 67 shares have been put up for sale. So far, bids have been received for more than 8 crore shares. 86% of the reserved share for employees and 51% of retail investors have been subscribed. Investors will get a chance to invest till May 9.
LIC's IPO opens from today, till May 9; Know the application process
The company's shares will be listed on the stock exchanges on May 17, a week after the close of the IPO. The central government is expected to get Rs 21,000 crore from LIC's IPO. Under the IPO, the government is selling its 22.13 crore shares in the company. The price range for this has been fixed at Rs 902 to Rs 949 per share.