RBI refuses to print extra notes; repo rate unchanged

Reserve Bank of India (RBI) Governor Shaktikanta Das said on Thursday that the central bank has no plans to print more rupees to meet the rising fiscal deficit. This is the third consecutive year the government has revised the fiscal deficit target. The fiscal deficit in the budget is projected to be 3.8% in the current financial year, while in the last budget it was expected to be 3.3%.

The fiscal deficit is estimated to be 3.5% for the next financial year 2020-21 while in July 2019 it was expected to be 3%. The government’s fiscal deficit has crossed 132% at the end of December.

The difference in the total income and expenditure of the government is called the fiscal deficit. This shows how much borrowing will be required by the government to run the business. The fiscal deficit is usually due to a decrease in income or an excessive increase in capital expenditure.

RBI governor explains

Das told reporters after the monetary policy review, “There are no plans to print additional notes to meet the fiscal deficit.” The government has used the exemption clause under the Fiscal Accountability and Budget Management (FRMB) Act in the budget. A 0.5% increase is available for fiscal deficit profiling.

“Given the evolving growth-inflation dynamic, the MPC felt it appropriate to maintain status quo on the policy repo rate but resolved to continue with the accommodative stance as long as necessary to revive growth, while ensuring that inflation remains within the target. The MPC also recognised that there is monetary policy space for future action,” Das’s statement read.

Explaining the backdrop of the policy decision, Das said, “As against the cumulative reduction in the policy repo rate by 135 bps since February 2019, transmission to various money and corporate debt market segments ranged from 146 bps (overnight call money market) to 190 bps (3-month CPs of non-banking finance companies). Transmission through the long(er) end of government securities market was at 73 bps (5-year government securities) and 76 bps (10-year government securities).”

The RBI governor wrote, “… transmission to the credit market is gradually improving. The 1-year median marginal cost of funds-based lending rate (MCLR) has declined by 55 bps during February 2019 and January 2020. The weighted average lending rate (WALR) on fresh rupee loans sanctioned by banks has declined by 69 bps and the WALR on outstanding rupee loans by 13 bps during February-December 2019.”

The external benchmark system introduced from 1 October 2019 has strengthened monetary transmission further, Das said. “Most banks have linked their lending rates for housing, personal and micro and small enterprises (MSEs) to the policy repo rate of the Reserve Bank. During October-December 2019, the WALRs of domestic banks (public and private sector) on fresh rupee loans declined by 18 bps for housing loans, 87 bps for vehicle loans and 23 bps for loans to micro, small and medium enterprises (MSMEs). These developments should amplify the effects of the cumulative policy rate reductions since February 2019 and help boost domestic demand going forward,” the RBI governor said.

Following the budget, the middle class sitting around waiting for the Reserve Bank of India (RBI), got disappointed on Thursday. RBI on Thursday decided to keep the repo rate at the level of 5.15 in the last bi-monthly monetary policy review meeting of the current financial year. The central bank has taken this step amid uncertain global environment and intensifying inflation in the domestic market and raising the fiscal deficit estimate in the budget.

Cheque clearance expedited

In another development, the RBI on Thursday announced the enforcement of the cheque truncation system across the country by September 2020. This implies your cheque will be cleared in a very short time. The RBI made this announcement during the last bi-monthly monetary policy review meeting of the current financial year.

The bank uses scanned copy instead of a physical copy of the cheque for settlement under CTS. This process makes the check clearing process partially electronic. The time of clearing the cheque in CTS is greatly reduced too.

Sometimes it happens that during physical clearing the check is lost, due to which the settlement is delayed, which will not happen now. According to bankers, at present, most checks are already cleared under CTS.

Some banks have even stopped taking non-CTS checks. Currently, the clearing of checks between scheduled commercial banks currently takes three working days. In the CTS process, the photograph of the check is captured in the bank. He is then sent to the clearinghouse and then to the Dravi Branch.

This is among such policy measures of the RBI that have a direct bearing on ordinary citizens’ routine lives. Recently, the RBI had ensured that no default feature of a debit or credit card would be pushed down a customer’s throat; from domestic to international uses, you will decide upon receiving the card how and where to use it


Home loan interest rates: Know how much you pay per lakh

If you are thinking of buying a house, there is good news for you. Many banks have reduced the interest rate on home loans. State Bank of India has announced a 0.25% reduction in the external benchmark index in the new year, bringing its home loan rate down from 8.05% to 7.80%. The new rate has come into effect from today.

In Budget 2019, the government had already announced home loan seekers would get Rs 1.5 lakh more of rebate (make it a Rs 3.5 lakh rebate now) in tax on affordable housing loans.

On 1 October 2019, on the instructions of the Reserve Bank (RBI), more and more banks chose the repo rate as an external benchmark. Now onwards, a home loan will become cheaper immediately when the repo rate decreases.

Banks can choose the external benchmark rate to a spread of 2.65% of the repo rate. Currently, the repo rate is 5.15%. A bank offers loans at different interest rates to the salaried class and business people.

Salaried classSalaried classBusiness classBusiness class
BankRLLR No.From (%)To (%)From (%)To (%)With effect from
Syndicate Bank5.157.858.157.858.201 Nov
Punjab National Bank7.807.958.705 Oct
Central Bank of India8.008.008.3010 Oct
United Bank of India-EBLR7.858.008.151 Nov
Oriental Bank of Commerce7.958.008.555 Oct
Canara Bank8.058.0510.057 Nov
UCO Bank8.058.058.05 5 Oct
Bank of India8.008.108.408.109.0010 Oct
Corporation Bank7.908.10 8.3515 Nov
Bank of Baroda8.158.159.151 Dec
Andhra Bank Nov
United Bank of India-RLLR7.708.158.151 Nov
Union Bank of India88.209.3511 Oct
Bank of Maharashtra8.208.208 Oct
SBI Term Loan8.058.208.358.558.701 Oct
Indian Overseas Bank8.008.208.451 Nov
Indian Bank7.958.208.458.308.551 Nov
IDBI Bank8.258.258.608.358.8012 Oct
SBI Max Gain8.058.458.808.608.951 Oct
Allahabad Bank5.158.5010.50
Axis Bank5.158,559.208.659.402 Nov
Federal Bank5.158.558.658.608.7016 Oct
ICICI Bank5.158.608.958.759.104 Oct
Karur Vysya Bank7.958.65 12.507 Oct

Syndicate Bank, Allahabad Bank, Axis Bank, Federal Bank and ICICI Bank have an RLLR (Repo Linked Lending Rate) of 5.15%.

The RLLR is highest in IDBI Bank (8.25%) followed by Bank of Maharashtra (8.20%), Bank of Baroda (8.15%) and Andhra Bank (8.10%).

Tenure5 years10 years15 years20 years25 years
@8%Rs 2,028Rs 1,213Rs 956Rs 836Rs 772
@10%Rs 2,125Rs 1,322Rs 1,075Rs 965Rs 909
@12%Rs 2,224Rs 1,435Rs 1,200Rs 1,101Rs 1,053
@15%Rs 2,379Rs 1,613Rs 1,400Rs 1,317Rs 1,281

Use this table to calculate your loan affordability by multiplying the EMI that applies to the number of lakhs worth of your borrowing. For example, if you seek a loan of Rs 10 lakh, which you will repay in 10 years in 15 years at a rate of interest of 12%, your EMI amount will be 10 x Rs 1,435 = Rs 14,350.

If you are applying for a home loan, an amount of 1 lakh will attract different interests for 5 years, 10 years, 15 years and 20 years. The graph above explains how much annual interest will be charged at different periods according to the different rate of interest on a loan of one lakh.


Gross NPA ratio improves to 9.1; SBI foresees better FY 20-21

According to the latest RBI report, after the completion of the bad credit identification process, the gross non-performing loans of banks increased to 9.1% by the end of September 2019, from 11.2% in FY18. Net non-performing assets (NPA) of all commercial banks declined to 3.7% in FY19 as against 6 per cent in FY18.

“The gross NPA ratio of all banks declined in FY19 after rising for seven consecutive years,” RBI said in its 2018-19 Trend and Progress report.

It added that the improvement in asset quality was driven by state-run lenders who experienced declines in both gross NPA and net NPA ratios.

The report noted that the slippage ratio decline, as well as the reduction in outstanding gross NPAs, helped improve the GNPA ratio.

NPA situation to improve post-March 2020: SBI chairman

Meanwhile, State Bank of India (SBI) chairman Rajnish Kumar had said on Saturday that most banks would be in good shape in terms of NPA by March and there was no shortage of cash for loan disbursement in the banking system. is. He had said at the 92nd annual conference of FICCI that there had been no significant reduction in the demand for credit in the infrastructure and consumer sectors, so there are opportunities for credit distribution in these areas. “By March 31, most banks will be in good standing in terms of NPAs,” he said.

Asked about the Reserve Bank’s complaint that the banks were not transferring the benefit of reducing the repo rate to consumers, Kumar said that banks cannot cut the interest rate by more than a limit given the risk of imbalance in assets and liabilities. The SBI chairman said that there is no shortage of capital in the banking system. He said that corporates are not taking adequate loans and are not utilizing their potential well.

Regarding lending to telecom companies for the proposed auction of spectrum, Kumar said, “It is completely unsafe for us to give loans to telecom companies for spectrum auction. It is safe on paper because the auction is going to be done by the government, but in practice But it’s completely unsafe. “

“Therefore, in such circumstances banks will have to evaluate carefully before lending to the telecom sector, as there is a high probability of default in payment of loan instalments,” Kumar said.


Today onwards, here’s how your economy has changed

There have been various changes in the rules of various sectors of the economy including banking, driving license, GST from 1 October that is today. These changes are going to have a significant impact on the lives and economies of all of us.

According to the guidelines of the Reserve Bank (RBI), today onwards, banks will give retail loans at a repo rate-linked interest rate. Due to the revision in GST rates, the prices of some commodities will increase wil those of some others will decrease. Some very important changes related to driving license have come into effect from today, too.

Let us know in detail about these changes.

Repo rate-linked interest rate today onwards

Following the RBI guidelines, public sector banks, including SBI, Canara Bank and Corporation Bank, have begun offering retail loans at repo rate-based interest rates beginning 1 October. This will result in a decrease in your monthly EMI due to the reduction in repo rate by RBI.

Earlier, banks did not pass on the full benefit of a reduction in repo rate to the customers. In view of this reluctance of banks, the central bank issued guidelines on 4 September, directing retail and MSME loans to be linked to external benchmarks.

Changes in GST rates: Difference to your consumption beginning today

According to the decisions of the GST Council, the new rates have come into effect from 1 October. Now, GST will not have to be paid on hotel rooms for a daily rent of up to Rs 1,000. Also, the new rate of GST will be 12% on rooms with a rent of Rs 7,500.

The new GST rate on train coaches and wagons is now 12%. In addition, caffeine drinks also will become more expensive. Now GST will be levied on such substances at the rate of 28% and additional cess of 12% have to be paid.

No cashback on payment by credit card at petrol pumps

On filling petrol or diesel at a pump, you will no longer get a cashback of 0.75% if you pay the amount due using a credit card. Banks offering credit cards have sent a message to their customers, informing them that the public sector petrol companies have decided to abolish this exemption from 1 October onwards. However, this exemption on payments by other means will continue.

Drastic reduction in corporate tax: Impact begins today

Finance Minister Nirmala Sitharaman recently announced a huge reduction in corporate taxes, giving relief to domestic companies. The finance minister announced the reduction of corporate tax from roughly 30% to approximately 22%. This deduction will be effective beginning today.

Manufacturing companies formed after 1 October will now have to pay corporate tax at the rate of just 15%. There will be an option to pay a 15% tax.

Rules related to driving licence and RC have changed

Many rules related to driving licence have changed from today onwards. You will have to update your old licence, which you can do online. With the implementation of this rule, driving licence and the vehicle registration certificate (RC, available in the form of a card) will be of the same colour everywhere in the country.

SBI to charge less penalty

The State Bank of India (SBI), the country’s largest bank, has announced a drastic reduction in the amount of penalty for not maintaining the minimum balance stipulated. This reduction will be effective from today onwards.

SBI customers in the metropolitan cities can make 10 and those from non-metro locations can make 12 transactions a month free of charge.


Repo rate cut again? Maybe, but when will my EMI reduce?

New Delhi: If all goes well, once again the EMI against your loan may reduce. Governor of the Reserve Bank of India Shaktikanta Das has indicated there would be another reduction in the repo rate.

Das said, “Today we are seeing that prices are stable. Inflation is far below 4%. We expect inflation to remain down for the next 12 months. In such a situation, especially at a time when growth has softened, there is some scope for further reduction in the policy rate.” However, he declined to say anything about the RBI’s estimate of the current financial year growth. He said that whatever is to be said on this will be made public with the announcement of monetary policy review on 4 October.

The three-day review meeting of RBI’s Monetary Policy Committee is starting on 1 October. The RBI reduced its policy rate (aka repo rate) four times this year. On 7 August, the central bank had reduced the repo rate by 35 basis points (bps) to 5.40%. The previous cut was announced in June. The one before that was announced in April. There had been repo rate cuts in the previous years, too. However, lenders like banks have been noticed to be quite reluctant to pass on the benefit proportionately to common, middle-class borrowers.

Proposal of repo rate cut inspired by response to corporate tax cut?

On Friday, the Union government announced a cut in the corporate tax. According to Das, after this decision of the government, foreign investors are turning to India. The RBI governor said, “This is a very bold and positive step. As far as international investors are concerned, corporate tax rates in India have become very attractive compared to emerging markets in ASEAN countries and other parts of Asia. In my opinion, today India has reached a very strong position in the competition. This will attract more investment.”

Das sees the government’s decision as a booster for domestic investors as well. He said that companies would now have more money left to increase capital investment. On savings, he said some companies would increase their investment and some may reduce their debts. This will improve their balance sheets according to him.


Why this rate cut by RBI was necessary, what sectors will benefit

Mumbai/New Delhi: In a move that may lead to lower home, auto and other loan EMIs, the RBI on Thursday cut interest rates for the third time this year by 25 basis points to their lowest level in nine years and signalled more easing as it looked to support an economy growing at the slowest pace since the BJP first came to power in 2014.

The Reserve Bank of India (RBI) cut the repo rate to 5.75% and reverse repo rate to 5.50% and expected banks to transmit these to home, auto and other loan borrowers faster.

With all the six members of the Monetary Policy Committee (MPC) voting unanimously for a rate cut and switching of its stance to “accommodative” from neutral, RBI Governor Shaktikanta Das said the shift in the stance meant that an increase in interest rates is “off the table.” He wanted the banks to expedite the transmission of the current reduction in rates as well as similar ones that happened in February and April.

In three back-to-back bi-monthly monetary policies, the RBI has lowered interest rates by 75 basis points (0.75 percentage point).

With India’s GDP growth slipping to a five-year low of 5.8% in the January-March quarter, the first instance of growth falling below China’s in last few quarters, the RBI lowered its growth forecast for the economy to 7% from the April view of 7.2% for the 2019-20 April-March fiscal year.

“Growth impulses have weakened significantly,” the RBI said in the monetary policy statement.

The reduction in interest rate will help boost credit growth, helping arrest the slowdown in the economy ahead of the new Finance Minister Nirmala Sitharaman presenting Modi-2.0 government’s first budget next month that is widely expected to announce measures to generate jobs and revive the economy.

While inflation remained below its medium-term target to give “scope” to the MPC “to accommodate growth concerns by supporting efforts to boost aggregate demand”, the RBI marginally raised its retail inflation outlook for the first half of 2019-20 to a range of 3-3.1% from 2.9-3% that it had outlined in last monetary policy in April, due to a broad-based pickup in food prices.

It, however, slightly trimmed its inflation outlook for the second half of the year to 3.4-3.7% from its earlier projection of 3.5-3.8%.

“The headline inflation trajectory remains below the target mandated to the MPC even after taking into account the expected transmission of the past two policy rate cuts. Hence, there is scope for the MPC to accommodate growth concerns by supporting efforts to boost aggregate demand, and in particular, reinvigorate private investment activity, while remaining consistent with its flexible inflation targeting mandate,” the MPC said.

RBI’s medium-term inflation target is 4%.

“A sharp slowdown in investment activity along with a continuing moderation in private consumption growth is a matter of concern,” it said.

With the 0.25 percentage point cut Thursday, the repo rate, at which the central bank lends to the system, comes down to 5.75%, as was widely expected. Earlier, the repo rate was at 5.75% in July 2010.

Consequently, the reverse repo rate under the LAF stands adjusted to 5.50%, and the marginal standing facility (MSF) rate and the Bank Rate to 6.0%.

MPC noted that political stability, high capacity utilisation, buoyant stock markets, an uptick in business expectations in the second quarter and financial flows are positive from a growth perspective.

It made its disappointment clear at the transmission of rate cuts, saying the weighted average lending rate has gone down by only 0.21%, while the same for older loans has increased 0.04%, as against policy rate cuts of 0.50 percentage point.

The central bank also announced doing away with charges on fund transfers through RTGS and NEFT routes to boost digital transactions and asked banks to pass on the benefits to customers.


RBI brings cheers to industry, middle class with 25 basis points cut in repo rate

New Delhi: The six-member monetary policy committee (MPC) of the Reserve Bank of India (RBI) has cut policy rates by 25 basis points (0.25%) during the first bi-monthly monetary review of the financial year 2019-20. Now the repo rate has decreased from 6.25% to 6%.

Analysts believed that due to the fall in inflation, RBI could get an opportunity to consider the concern related to the development of the economy. The repeated economic data such as the sale of cars, PMI and IIP data have shown signs of slowing economic activity.

After achieving a high growth rate of 7.3% in July 2018, the core sector growth rate has been steadily falling — although some industries in the core sector have performed very well recently.

The MPC had changed the trend of monetary policy in its review made in February by turning it ‘negligent’ to ‘neutral’. Economists believe that this was a sign of a cut in policy rates this time.

RBI meets expectation

Firm India Ratings had said that, according to the level of growth and inflation at the present time, RBI had the scope of cutting policy rates by 0.25%, which is exactly what has happened. The rating agency had expressed the hope that the RBI monetary policy would change the trend from ‘neutral’ to ‘liberal’ — an expectation that was met.

During the monetary policy review, economists and analysts look at these four issues.

Cash position

The biggest factor is whether the policy rate cut would benefit customers. The cash crisis following the demonetisation of 8 November – 31 December 2016 improved after October 2018, but the situation is still far from normal.

Edelweiss Securities says regarding the cash that, in the current situation, the rate of reduction in rates by the RBI will take time to reach the customers.

Monsoon and inflation

The RBI keeps monitors inflationary tendencies in the market. The Indian Meteorological Department (IMD) has predicted a negative impact on June-September south-west monsoon season due to the effect of El Niño. This monsoon is likely to cause 70% rainfall in the country. At the same time, inflation has been consistently low for the seventh month, with the RBI target of 4%. It is expected to be at an average of 4% for the entire fiscal.

But core inflation is close to 5.5%. In such a situation, the rate cut will depend on how the RBI estimates inflationary expenditure.

Global effect

Foreign investors pulled out huge amounts of money from India between April 2018 and October 2018. However, now things have changed and foreign investment is flowing into the country again.

However, according to the DIPP, FDI equity infusion has dropped to 7%. Market watchers will watch how the RBI deals with the sluggishness of FDI.

Growth rate decline

In its December policy, the RBI had projected a growth rate for the fiscal year 2018-19 to be 7.4% while the CSO increased the growth rate of 2018-19 to from 6.7% to 7.2% in FY 2017-18, given the better performance of the manufacturing and agricultural sector.


Central bank’s rate-setting panel begins three-day meet, may raise rate by 25 bps

Mumbai: The six-member Monetary Policy Committee (MPC), headed by RBI governor Urjit Patel, began three-day deliberations Wednesday to decide on the key policy rates amid expectations that it would go for a 25 basis points hike to counter the impact of rising oil prices on inflation.

If the RBI raises the interest rate on Friday, it would be third in a row. It hiked key policy rate in this fiscal’s second bi-monthly policy in June after a hiatus of four-and-a-half years. Subsequently, the RBI raised the repo rate or short-term lending rate by another 25 basis points in August policy meeting.

After two successive hikes, the repo rate currently stands at 6.50%.

According to experts, rising crude oil prices, depreciating rupee and widening current account deficit are some of the factors the policy-making body would keep in mind while deciding on interest rates.

The rupee Wednesday weakened further to 73.25 against the US dollar while Brent crude was trading near $85 per barrel.

Despite the rise in oil prices, the headline inflation number came down to 3.69% for August as against 4.17% for July.

The government has mandated the Reserve Bank to keep inflation within a band of 2-6%.

Experts says the weaker trend in the rupee may also prompt the central bank to raise repo rate.

The SBI, in its research report Ecowrap, said the RBI should raise the policy repo rate by at least 25 basis points to arrest the rupee’s fall.

“We rule out a hike of 50 basis points, as it may spook the market. However, there is a probability of change in neutral stance too, as three successive rate hikes with a neutral stance could contradict RBI message,” the research report said.

If the RBI increases repo rate by 25 basis points (bps), then it would be the third consecutive rate hike.

Morgan Stanley in a report said it expects the RBI to hike the short term rates at its October meeting.

It said it remains bearish on the rupee despite the recent emerging market (EM) stabilisation as there are concerns about the recent default of a local financial institution, oil prices and a widening fiscal deficit persist.

“The default has led to a rise in corporate spreads and increases the refinancing pressure on domestic financial institutions at a time when our economist expects the RBI to hike at its October meeting,” the Morgan Stanley report said.

A Kotak Economic Research report said the MPC will likely increase the repo rate by 25 bps in the October policy based on the implied impact of the expected cyclical recovery in growth, rupee depreciation, and crude price movement on the medium term inflation trajectory.

Bankers, however, do not expect the RBI to reduce cash reserve ratio (CRR), in the upcoming policy, despite liquidity condition remaining tight.


RBI may kick off rate hike cycle by Q3 FY19

New Delhi: The Reserve Bank is expected to go for a hike in key policy rates by the third quarter of this fiscal, as the country’s economic recovery is likely to be on a strong wicket by then, says a Morgan Stanley report.

The global financial services major, expects the start of a shallow rate hike cycle by the fourth quarter of 2018.

“The key argument for the case for a rate hike by 3QFY19 is two-fold, in that we don’t expect a significant overshoot of inflation relative to the RBI’s target and that the economic recovery will be on a surer footing by then,” Morgan Stanley said in a research note.

The global brokerage, expects private capex to show signs of recovery by the end of this year.

“Against this backdrop of greater certainty and a more sustained recovery in growth, the central bank can then move to commence a shallow rate hike cycle,” it said.

In the first bi-monthly monetary policy for 2018-19, the central bank left the repo rate unchanged at 6%. The MPC maintained status quo for the fourth consecutive time since August last year.

Five members of the panel, including the RBI Governor, voted for a status quo while executive director Michael Patra was the lone member who wanted the key rate to be hiked by 25 basis points.

According to a Deutsche Bank Research, given the current and near-term growth-inflation mix, the RBI is likely to remain on an extended pause provided there is normal monsoon and global oil prices remain below $70/barrel.

“We expect a cumulative 75 bps rate hike in this cycle, but see the hikes starting from early next year, rather than this year under our base case scenario,” the Deutsche Bank Research report said.


Sensex jumps up 577 points, reacting to RBI policy, rates, forecast

New Delhi: Benchmark Sensex surged 577 points to end at 33,597 today after the RBI kept the policy rate unchanged and lowered the inflation forecast.

The central bank kept the interest rate unchanged at 6% for the fourth consecutive time since August last year but lowered retail inflation projection for the first half of current fiscal to 4.7-5.1% and 4.4% for the second half.

The Monetary Policy Committee (MPC) headed by RBI Governor Urjit Patel expects the growth rate to accelerate to 7.4% in 2018-19, up from 6.6% last fiscal, ended March 31, mainly on account of the revival of investment activity.

With regard to prices, the MPC lowered retail inflation target for the first half of current fiscal to 4.7-5.1% on sharp moderation in food price rise.

The status quo policy of RBI will be neutral to the EMIs for housing and vehicle loan borrowers, but banks are free to tinker with both deposit and lending rate depending on their asset liability position.

The decision of MPC is consistent with the neutral stance of monetary policy in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4% within a band of ±2% while supporting growth.

The MPC maintained status quo for the fourth consecutive time since August last year.

The repo rate, at which the central bank lends short-term money to banks, will continue to stay at 6%. The reverse repo rate, at which it borrows from banks and absorbs excess liquidity, will remain at 5.75%

The Reserve Bank also said India’s economic growth rate is expected to strengthen to 7.4% in the current fiscal, from 6.6% in 2017-18, on account of revival in investment activity.

The BSE Sensex took off on a positive note at 33,289.96 and advanced to the day’s high of 33,637.46 before ending at 33,596.80, up 577.73 points, or 1.75%.

This is its biggest single-day gain since 12 March when it had rallied 610.80 points. The gauge had lost 351.56 points in the previous session.

The NSE Nifty, after shuttling between 10,331.80 and 10,227.45, finally settled 196.75 points, or 1.94 points higher at 10,325.15.

The markets also cheered the ‘normal” southwest monsoon forecast by private weather forecasting agency Skymet.

Positive global cues, as trade war worries between the US and China faded, bolstered trading sentiment.