Coronavirus cases continue to rise as government takes more steps taken to contain spread

New Delhi, Jul 16: With India's economic growth sputtering, the Reserve Bank of India was expected to maintain a rate-cutting cycle, but an uptick in near-term inflation could give the central bank's Monetary Policy Committee reason to pause for now.

Having cut its key lending rate by an aggressive 115 basis points (bps) in 2020, on top of 135 bps cuts in 2019, the RBI so far has had little success in spurring credit growth amid varying degrees of lockdowns across India.

Some economists and market insiders argue it may be prudent for the MPC, the policy committee, to hold its fire when it meets early next month.

"It's probably too early to administer a demand stimulus. The RBI still has room to cut rates, but we probably want to be more cautious of the timing," said Venkat Pasupuleti, portfolio manager at Dalton Investments.

"Maybe they should wait a quarter to see how things pan out once the lockdown situation is eased further."

Market participants have factored in at least a 25 bps rate cut by the MPC on August 6 while analysts are predicting a total 50-75 bps cuts over the rest of the fiscal year that runs to March 31.

The spike in the retail inflation rate above the RBI's mandated 2%-4% target range is another reason for the central bank to take a breather, analysts say.

Annual retail inflation rose to 6.09% in June, compared to 5.84% in March and sharply above a 5.30% median forecast in a Reuters poll of economists.

Rahul Bajoria, an economist at Barclays, said the spike in both consumer and wholesale prices "could lead to a tempering in enthusiasm for material front-loaded policy support from here on."

Almost all economists however agreed the RBI cannot move away from its accommodative stance or call an end to the rate cutting cycle just yet.

India's economy grew at 3.1% in the March quarter - an eight year low - and some economists have predicted a contraction of more than 20% in the June quarter and a contraction of up to 5% in the fiscal year.

"Even in the event of a pause, we think the RBI and MPC would want to hold out the promise of more cuts," said A. Prasanna, economist with ICICI Securities.

RBI Governor Shaktikanta Das said in a recent speech the need of the hour is to restore confidence, preserve financial stability, revive growth and recover stronger, suggesting inflation concerns are unlikely to deter the downward trajectory for rates too soon.

"The August policy decision would boil down to a judgment call over whether RBI can maintain easy monetary and financial conditions without the aid of a token rate cut," Prasanna said. 

New Delhi, April 5: People were seen buying diyas and candles across the country to light them at 9 p.m. on Sunday to fight the "darkness of coronavirus" as requested by Prime Minister Narendra Modi.

Although the country is under a lockdown and all the shops barring those selling essential items are shut, but a number of makeshift roadside shops and carts have cropped up selling earthen lamps or diyas at various places.

The earthen lamps, along with other 'puja samgari', are also sold near various temples. Those shops also opened on Sunday.

Gatherings at the temples and other religious places too are barred.
Those who did not find diyas in their localities contended with candles available at the local general stores.

Prime Minister Narendra Modi had on April 3 appealed to people in a televised address to light diyas and candles on April 5 at 9 pm to fight the darkness spread by coronavirus pandemic.

"Friends, amidst the darkness spread by the corona pandemic, we must continuously progress towards light and hope. We must defeat the deep darkness of the crisis by spreading the glory of light in all four directions," said the Prime Minister in a video message.

"And that is why, this Sunday, on April 5, we must all together, challenge the darkness spread by the corona crisis, introducing it to the power of light. On this day, we must awaken the superpower of 130 crore Indians. We must take the super resolve of 130 crore Indians to even greater heights," Modi said.

He asked the people to turn off all the lights in their homes and stand at doors or balconies and light candles or diyas, torches or mobile flashlights for 9 minutes on April 5.

"In that light, in that lustre, in that radiance, let us resolve in our minds that we are not alone, that no one is alone! 130 crore Indians are committed, through a common resolve!" he said.
PM Modi's call to light diyas, torches or mobile flashlights amid the lockdown has proved to be a boon for shopkeepers selling diyas and candles.

"Sales of diyas have increased to 50 per cent and we also got orders. It has happened because of Modi ji's appeal. We are with him in this," Ram Ravi Kumar, a shopkeeper in Delhi told news agency.

Vikas Kumar, a resident of Patna, said, "I have bought 50 diyas for today. PM Modi had said that people have to light the diyas for nine minutes after switching off light at home."
Modi has asked citizens to not assemble anywhere while participating in this programme and emphasised on the importance of social distancing to prevent coronavirus spread.

Meanwhile, the number of positive cases of coronavirus in the country continues to surge. As per the Ministry of Health and Family Welfare, the total number of confirmed COVID-19 cases is 3,374 with 79 deaths.

New Delhi, Apr 10: With 896 COVID-19 cases reported in the country in the last 24 hours, India's total number of coronavirus positive cases rose to 6,761 on Friday, informed the Union Ministry of Health and Family Welfare.

Out of all these cases, 6039 are active cases, 516 have been cured/discharged/ migrated, and 206 deaths have been reported so far.

The country witnessed the highest one day increase with 896 cases.

37 deaths were reported in the last 24 hours.

Maharashtra with 1364 cases is the worst affected state followed by the Union Territory of Delhi with 898 cases and Tamil Nadu with 834 cases.

The country is under a 21-day lockdown until April 14 which was imposed to curb the spread of the virus.

States like Odisha and Punjab have extended the lockdown till April 30.