NDTV Profit Pulse: Top Stories from March 5, 2025
By NDTV Profit Desk
Published on March 5, 2025, 08:00 PM IST
In an action-packed day for the Indian financial markets and economy, major developments unfolded across various sectors. The Reserve Bank of India (RBI) unveiled plans to enhance liquidity, the Nifty 50 index broke a ten-day losing streak, and significant moves were noted in commercial operations by prominent companies. Below are the top eight stories, all encapsulated in under eight minutes of reading.
RBI’s Liquidity Boost
The Reserve Bank of India (RBI) announced on Monday a significant move to inject liquidity into the banking sector through open market operations (OMO). The central bank will purchase government securities worth ₹1 lakh crore distributed in two tranches of ₹50,000 crore each, with the first auction scheduled for March 12 and the second on March 18. Additionally, RBI plans to conduct a dollar-rupee buy/sell swap auction totalling $10 billion, covering a duration of 36 months, set to take place on March 24. This decision follows a previous swap of the same amount, underscoring RBI’s commitment to stabilizing the financial environment amid ongoing liquidity concerns.
RBI’s Concern Over Non-Bank Lenders
In a separate note, the RBI raised alarms regarding non-bank financial companies (NBFCs) that are providing perpetual credit lines. Borrowers can access these funds indefinitely, raising concerns that this could lead to the "evergreening" of loans. The regulator aims to ensure that these lending structures do not enable borrowers to misuse fresh credit to settle existing debts, potentially leading to a liquidity crisis.
Digital Data Protection Regulations Finalized
On the regulatory front, the Indian government has concluded public consultations regarding the Digital Personal Data Protection regulations, confirming that no further extensions for comments will be provided. The finalized rules are expected to reshape the framework for digital data protection in India and are set for imminent release, marking a critical step for data privacy standards in the country.
Nifty 50 Ends 10-Day Losing Streak
The Indian stock market experienced a significant rebound, with the Nifty 50 index rising by 1.15% to reach 22,337, and the Sensex climbing 1.01% to close at 73,730. This recovery marks the end of the longest losing streak seen in 29 years, as all sectoral indices closed higher, with notable gains in the Nifty Metal and Nifty Media indices. Investors welcomed the news of increased market liquidity and a more optimistic outlook.
China Sets GDP Growth Target
Over in Asia, China has established a GDP growth target of around 5% for 2025. This target remains consistent for the third consecutive year, despite ongoing trade tensions with the United States. Additionally, Beijing has introduced a fiscal deficit target of about 4% of GDP, marking its highest in over thirty years, amidst efforts for economic stability.
High Earners Utilize Tax Deductions
In the realm of taxation, high-income earners are increasingly leveraging Section 80GGC of the Income Tax Act, which allows for deductions on donations made to political parties. This provision, exclusively applicable under the old tax regime, has seen a surge in utilization. Reports suggest the emergence of intermediaries to facilitate these transactions, with some political parties allegedly returning up to 95% of the donations in cash.
Looming Air Conditioner Shortage
As India approaches the peak summer season, a potential shortage of air conditioners looms on the horizon. Manufacturers are facing delays in compressor and component shipments, which could affect production capabilities. Companies such as Voltas and Blue Star have indicated they can manage a 25-30% increase in demand; however, any larger surge may lead to significant stock shortages.
Proposed Tax Bill’s Digital Reach
Lastly, the proposed Income Tax Bill, 2025, may expand the powers of tax officials to access individuals’ emails and social media accounts if they suspect undisclosed income. The new rules, scheduled to take effect from April 1, 2026, involve provisions that would allow officials to override access codes to digital accounts, igniting discussions on privacy and oversight.
Other Notable Stories:
- Anticipated market setup for March 6 includes resistance zones for Nifty at 22,520 and 22,720.
- Authorities seized gold valued at ₹12.56 crore from a Kannada actress at Bengaluru Airport.
- Industry insights indicate that the recent market correction cannot solely be attributed to the US, pointing to overheating in certain sectors, according to UTI Asset Management’s Tyagi.
- The government has approved a ₹4,000 crore ropeway project in Kedarnath.
- Oyo aims to achieve a profit of ₹1,100 crore in FY26, according to statements from founder Ritesh Agarwal.
- There has been a noticeable increase in buyers for newly-launched housing units, particularly in Bengaluru and Chennai.
Stay tuned as the landscape continues to evolve with these significant developments influencing the trajectory of the Indian economy and markets.
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