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Evening Market Pulse: RBI’s Liquidity Moves, Nifty Rebounds, and China’s Growth Goals – Top 8 Stories at 8 PM!

March 6, 2025
Smart Money

NDTV Profit Pulse: Key Highlights from March 5

In an eventful day for the Indian financial markets and beyond, several significant updates shaped the landscape late on March 5. From the Reserve Bank of India’s (RBI) efforts to bolster liquidity in the banking sector to the notable end of the Nifty 50’s ten-day losing streak, here are the top eight stories captured in our evening recap.

RBI’s Liquidity Boost

The Reserve Bank of India took decisive action on March 5, announcing plans to inject liquidity into the banking system through open market operations (OMOs). This initiative includes the purchase of government securities worth ₹1 lakh crore, to be carried out in two phases of ₹50,000 crore each, commencing with an auction on March 12 and concluding by March 18. Adding to these efforts, the RBI will conduct a dollar-rupee buy/sell swap auction amounting to $10 billion for a duration of 36 months, scheduled for March 24. This move follows a robust response to an earlier swap conducted earlier this week.

RBI Raises Concerns Over Non-Bank Lending

In a related note, the RBI expressed concerns regarding non-bank financial companies (NBFCs) that offer perpetual credit lines. These financial structures allow borrowers to access funds indefinitely without fixed repayment timelines, raising alarms about potential risks associated with evergreening of loans.

Digital Data Protection Regulations Finalized

The government has completed public consultations on the Digital Personal Data Protection regulations. Following this round of dialogue, no further extensions for comment will be permitted, paving the way for the release of final rules that will significantly influence India’s data protection framework in the near future.

Nifty 50 Marks Reversal

After enduring the longest losing streak in nearly three decades, the Nifty 50 finally rebounded, gaining 1.15% to settle at 22,337. The Sensex also saw a positive shift, rising by 1.01% to close at 73,730. All sectoral indices closed higher, with notable performances from Nifty Metal and Nifty Media, signaling optimism among investors.

China Sets Ambitious Growth Target

In global economic news, China has set its GDP growth target at a steady 5% for 2025, maintaining this target for the third consecutive year despite ongoing trade tensions with the United States. The Chinese government has also announced a fiscal deficit target of around 4% of GDP, marking a significant level not seen in over thirty years.

Tax Maneuvers Among High Earners

In the realm of personal finance, high-income earners are increasingly leveraging Section 80GGC of the Income Tax Act, a provision that allows for deductions on donations made to political parties. Although this provision has been in existence for some time, it is currently witnessing a surge in popularity, with intermediaries facilitating these transactions in exchange for the political parties returning a large portion of the donation in cash.

Looming Air Conditioner Shortages

As summer approaches, India’s air conditioning industry may experience shortages due to delays in the supply chain, particularly in the shipment of compressors and components. Leading manufacturers like Voltas, Blue Star, and Panasonic have indicated their ability to manage a mild demand increase but warn that significant surges could lead to stock shortages by mid-April.

Proposed Digital Tax Bill Raising Concerns

Lastly, a new proposed Income Tax Bill may provide tax officials with access to individuals’ emails and social media channels if there’s suspicion of unreported income. The bill, set to potentially take effect from April 1, 2026, contains a clause that allows officials to bypass access codes to digital accounts, including banking and cloud storage, raising significant privacy concerns among taxpayers.

Additional Headlines

Here are a few other noteworthy updates from today:

  • The market setup for March 6 faces resistance zones at 22,520 and 22,720.
  • Gold worth ₹12.56 crore was seized from an actress at Bengaluru Airport.
  • Industry experts suggest that the recent market correction cannot solely be attributed to U.S. factors, citing overheated pockets in the market.
  • The government has greenlit a ₹4,000 crore project for a ropeway in Kedarnath.
  • Oyo anticipates a profit of ₹1,100 crore in FY26, as stated by founder Ritesh Agarwal.
  • There has been an uptick in buyers for newly launched housing units, particularly in Bengaluru and Chennai.

The developments from March 5 paint a picture of a market on the mend, alongside various regulatory changes and global economic considerations that may influence future trends. As always, staying informed is key to navigating this dynamic financial landscape.