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The RBI hikes the repo rate by 50 bps to 4.90% and retains the GDP growth forecast at 7.2%| Top Market news

RBI Hike- Tradeplus

The RBI hikes the repo rate by 50 bps to 4.90% and retains the GDP growth forecast at 7.2%

On June 8, the RBI announced its monetary policy and hiked repo rates by 50 bps to 4.90%. This led to the SDF rate increasing to 4.65% and the MSF and bank rates increasing to 5.15%. However, the RBI left the CRR untouched at 4.5% citing that the existing VRRRs was sufficient to take care of liquidity issues. The RBI also raised its inflation forecast for FY23 by 100 bps to 6.7%, while the GDP growth forecast for FY23 was maintained at 7.2%. Despite the second repo rate hike, rates are still 25 bps short of pre-COVID levels.

Biocon’s stock price has dropped to a two-year low of Rs. 312. It has dropped 18% since reporting a 4% drop in net profits in Q4FY22

Biocon stock hit a 2-year low of Rs312. It has lost 18% since it reported a 4% fall in net profits in Q4FY22. Revenues from operations were up by 31% in Q4FY2. In the last year, Biocon has fallen 22% while the index is up over 30%. However, not all brokers are pessimistic. Biocon has several triggers, like the Serum Vaccine distribution alliance, the launch of multiple biosimilars, etc. Another big area of focus is Biocon’s plans to become a dominant player in immunosuppressants API, a high opportunity low-competition segment.

India’s coal production increases by 34% YoY to 71.30 million tonnes in May

India’s coal production surged by 33.88% to 71.30 million tonnes in May 2022. This was disclosed by the Coal Ministry. Coal India’s output surged 30.04% at 54.72 MT, Singareni Collieries’ output was up 11.01% at 6.04 MT, and the output of captive mines grew 83.3% at 10.54 MT. Captive mining growth has been one of the key trends in the last month. This resulted in thermal power generation growing by 26.18% in May 2022 on a YoY basis. Total power generation in May 2022 rose to 140,059 MU due to hydro and wind energy.

TVS Motor Company has begun the fundraising process for $350 million for its electric mobility business

TVS Motor Company has kick-started the process of raising $350 million for its electric mobility business, with a view to unlocking the hidden value in its EV business. TVS Motor Company would then become the third listed company after Tata Motors and Greaves Cotton to raise funds for an electric vehicle subsidiary. Some of the top private equity funds and sovereign funds are expected to participate in this round. Its current e-scooter offering, iQube, has an order backlog of nearly 12,000 units as of the end of March 2022.

Brookfield commissions first solar project in India with 445 MW capacity

Brookfield Renewables has commissioned its first greenfield solar plant in India with 445 MW capacity at Jodhpur, Rajasthan. NTPC will offtake this power under a 25-year PPA (power purchase agreement). The project will generate 800 GWh of clean energy annually and avoid 6 lakh tonnes of carbon emissions. The overall operational Brookfield renewable energy portfolio in India is close to 1 GW. Brookfield Renewables has partnered with Axis Energy Ventures while Tata Power Solar Systems was the construction partner.

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