Ashok Leyland zooms 13% as US-Iran ceasefire lifts markets; mcap tops ₹1trn Shares of Chennai-based automotive manufacturer Ashok Leyland surged around 13 per cent to hit an intraday high of 172.79 on the National Stock Exchange (NSE) amid an overall upbeat market sentiment. The rally came as investors cheered the announcement of a temporary two-week ceasefire between the US and Iran, which significantly eased global concerns about prolonged conflict and potential supply disruptions. The stock opened at ₹165.10 on Wednesday, up 8 per cent from the previous session's close of ₹152.93, and traded at ₹1772 by 02:15 PM, reflecting a 12.5 per cent gain. The benchmark NSE Nifty50 was up 3.56 per cent at 23,947.65, while the Nifty Auto index rose 7 per cent to 26,034.35. The Reserve Bank of India (RBI) six-member Monetary Policy Committee (MPC), headed by Governor Sanjay Malhotra, unanimously decided to keep the repo rate unchanged at 5.25 per cent for the second consecutive meeting. The decision to maintain a neutral policy stance supported the market rally, as investors interpreted it as a sign of stability in the economic outlook. The MPC’s decision followed mixed signals from the economy, with consumer price inflation moderating to 4.2 per cent in February but growth slowing to 6.3 per cent in the latest quarter. Ashok Leyland’s total market capitalisation surpassed the ₹1 trillion mark, reaching 1,01,018.55 crore on Tuesday, up ₹11,189 crore from ₹89,828.86 crore. The company’s 52-week high was at ₹215.42, while its 52-week low stood at ₹95.93. The surge in market cap reflected renewed investor confidence in the company’s prospects, driven by both domestic and international factors.#nifty_auto #reserve_bank_of_india #ashok_leyland #nse_nifty50 #sanjay_malhotra
RBI MPC Meeting Amid US-Iran War: Repo Rate Decision to Impact Loan EMIs The Reserve Bank of India (RBI) is set to hold its Monetary Policy Committee (MPC) meeting on Wednesday, April 8, 2026, amid escalating tensions from the ongoing conflict between the United States, Israel, and Iran. The meeting will focus on global economic instability, surging crude oil prices, inflationary pressures, and the potential impact of the war on India’s financial markets. A key outcome of the meeting will be the decision on the repo rate, which directly affects the Equated Monthly Installments (EMIs) for home and auto loans. The decision comes against a backdrop of heightened global uncertainty. The war has disrupted the Strait of Hormuz, a critical oil transit route, exacerbating the energy crisis and driving up oil prices. This has raised concerns about inflation and economic growth in India and other nations. The RBI’s MPC will assess how these developments influence monetary policy and the broader economy. The RBI’s governor, Sanjay Malhotra, will lead the six-member committee, which is addressing the fiscal challenges of FY2026-27. The meeting follows a period of rate cuts in the previous year, during which the repo rate was reduced by 125 basis points. However, in February 2026, the central bank paused further cuts, maintaining the rate at 5.25%. Economists are currently predicting that the repo rate will remain unchanged, as the RBI prioritizes stabilizing financial markets and supporting the rupee amid global volatility. The decision to keep the repo rate steady would mean no immediate impact on loan EMIs for borrowers. However, the RBI’s focus on liquidity management and currency support is expected to influence long-term interest rates.#reserve_bank_of_india #sanjay_malhotra #monetary_policy_committee #hsbc_chief_economist #pankaj_bhadani
First time in this rate cycle, RBI faces growth-inflation dilemma The Reserve Bank of India (RBI) is encountering its first significant challenge since the start of the current rate-cut cycle, as it grapples with a growth-inflation tradeoff triggered by the war in West Asia. This dilemma marks a departure from the earlier "goldilocks period" characterized by low inflation and robust economic growth. The April 2026 monetary policy review will be the first under the new series for GDP and inflation projections, coinciding with the start of the inflation target period from April 1, 2026, to March 31, 2031. The economic landscape shifted dramatically in the past month due to the war’s impact on global supply chains. Chief Economic Advisor V Anantha Nageswaran highlighted four key channels through which the conflict affects the economy: disruptions in oil, gas, and fertilizer supplies, higher import costs, increased logistics expenses, and reduced remittances from Indian workers in the Gulf. These factors threaten to derail the previously stable growth trajectory, which saw GDP expand at 8% in the first half of the financial year. RBI Governor Sanjay Malhotra, who assumed office in December 2024, had previously described this phase as a "rare goldilocks period," with inflation at 2.2% and growth remaining strong. However, the war has disrupted this equilibrium, forcing the central bank to reconsider its approach. The Monetary Policy Committee now faces the challenge of balancing inflation control with the need to sustain growth, as rising oil prices and geopolitical tensions could push inflation higher. The RBI’s upcoming policy meeting on April 6-8 will be pivotal in shaping the trajectory of monetary policy.#reserve_bank_of_india #sanjay_malhotra #v_anantha_nageswaran #madan_sabnavis #gaura_sen_gupta
