Bank loans are going to get more expensive. On Thursday the RBI hiked its two key policy rates with immediate effect. The repo rate was increased by 25 basis points to 6%. And the reverse repo was hiked a full 50 basis points to 5%. This is the fifth time the RBI has increased rates this year.
The Vedanta- Cairn deal might have some waiting to do before regulators give it the go-ahead. On Thursday petroleum secretary S Sundareshan said approval of the deal would take at least one month. Vedanta plans to buy a controlling stake in Cairn India buy purchasing share from parent company Cairn Energy and through an open offer.
Indian markets broke a seven-day winning streak on Thursday. The Sensex lost 85 points to close at 19,417. And the Nifty shed 32 to end at 5,829.