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Market Resurgence: RBI’s Liquidity Boost and Nifty Ends Losing Streak Among Key Headlines

March 17, 2025
Smart Money

NDTV Profit Pulse: March 5 Highlights of the Day

Indian markets rebound, RBI announces liquidity measures, and significant economic updates from China and India mark the financial landscape of March 5, 2025. Here are the top eight stories that shaped the day.

RBI’s Liquidity Injection

In a strategic move to enhance liquidity within the banking sector, the Reserve Bank of India (RBI) announced plans to conduct open market operation (OMO) purchase auctions. The RBI will purchase government securities valued at ₹1 lakh crore, divided into two tranches of ₹50,000 crore each, with the first auction scheduled for March 12 and the second on March 18. Additionally, the central bank plans a $10 billion dollar-rupee buy/sell swap auction, slated for March 24, aimed at stabilizing the currency and ensuring adequate liquidity.

These measures follow a similar $10 billion forex swap auction conducted earlier this week, signaling the RBI’s continued commitment to addressing liquidity challenges in the market.

Digital Personal Data Protection Regulations Finalized

In a significant development for digital governance, the Indian government has finalized its regulations on Digital Personal Data Protection after concluding public consultations. This legislative move marks a pivotal moment in India’s approach to data privacy, imposing legal obligations on digital companies regarding data management. The full details of the final regulations are anticipated to be unveiled shortly, setting the foundation for a more regulated digital ecosystem.

Nifty 50 Breaks Losing Streak

The Nifty 50 index experienced a notable turn of events, rising by 1.15% to close at 22,337 points, effectively ending a 10-day losing streak—the longest in nearly three decades. The Sensex also reflected positive momentum, gaining 1.01% to close at 73,730. All sectoral indices saw gains, notably in the Nifty Metal and Nifty Media segments, as investor sentiment shifted positively.

China’s Economic Growth Target Set

In global economic news, China has set its GDP growth target to approximately 5% for 2025. This announcement was made amidst ongoing trade tensions with the United States, and indicates a commitment to steady economic growth. Additionally, China has set its fiscal deficit target at 4% of GDP, marking the highest level in over 30 years as it navigates economic challenges.

Tax Strategies for High Earners

High-income individuals in India are increasingly utilizing Section 80GGC of the Income Tax Act to claim deductions for donations made to political parties. This provision, applicable only under the old tax regime, has gained popularity as a tax-saving strategy. Reports indicate that intermediaries are emerging to facilitate these transactions, with political parties returning a significant portion of donations in cash, leading to concerns regarding transparency and compliance.

Looming Air Conditioner Shortages

India may encounter air conditioner shortages by mid-April as manufacturers face challenges with delayed shipments of compressors and components. Major companies such as Voltas and Blue Star have indicated that they can handle a surge in demand of 25-30%, but express concerns about sustaining higher demand levels without potential stock crises. With summer approaching, attention turns to potential supply chain disruptions.

Proposed Income Tax Bill Enhances Digital Oversight

The proposed Income Tax Bill, set to be introduced in 2025, could significantly extend the reach of tax authorities by granting them access to taxpayers’ emails and social media accounts should they suspect undisclosed income. This bill, which may become effective April 1, 2026, includes provisions allowing tax officials to bypass access codes for various digital accounts, raising discussions about privacy and surveillance.

Additional News Highlights

In more news, the trading setup for March 6 indicates Nifty’s resistance levels at 22,520 and 22,720. Authorities recovered gold valued at ₹12.56 crore from an actress at Bengaluru Airport, illustrating ongoing efforts in customs enforcement. UTI AMC’s Tyagi noted the market correction is not linked to U.S. trends, while the government green-lighted a ₹4,000 crore Kedarnath ropeway project. Moreover, Oyo expects a profit of ₹1,100 crore in FY26, and there has been a rise in buyers for newly-launched housing units, particularly in Bengaluru and Chennai.

As these stories unfold, stakeholders in the financial and economic sectors will be closely monitoring developments that shape India’s market and policy landscape.