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Hijab Karnataka News LIVE Updates: Karnataka HC asks media not to report any oral

The Karnataka High Court today said it is considering two points: whether the wearing of headscarf comes within the Fundamental Rights, and whether the headscarf is an essential part of the religious practice. It asked the media not to report any oral observations and wait for the final orders.

The Hijab protests began on February 4 at the Government Girls PU college in Udupi district in Karnataka when some students alleged that they had been barred from attending classes. During the protests, some students were allegedly denied entry to college wearing hijab by Muslim women earlier this month.

On Monday, students of different colleges arrived that Shanteshwar Education Trust in Vijayapura wearing saffron stoles amid the Hijab row in Karnataka.

The pre-University education board had released a circular stating that the students can only wear the uniform approved by the school administration and no other religious practices will be allowed in colleges.

Following these protests, a three-day holiday from February 9 to 11 has been declared in all the universities under the Department of Higher Education and colleges under the department of Collegiate and Technical Education (DCTE).

Key takeaways from MPC:

  • Benchmark lending rate kept unchanged 10th time in a row at 4 pc, reverse repo rate at 3.35 pc
  • Projects GDP growth at 7.8 pc for next fiscal, against 9.2 pc this fiscal
  • India charting different course of recovery than rest of the world; to be fastest growing economy
  • RBI to continue with accommodative stance to revive and sustain growth; pandemic hold global economy hostage
  • Retail inflation projected at 5.3 pc for current fiscal, 4.5 pc in FY23
  • Inflation to peak in the current quarter within tolerance band, moderating in the second half of next fiscal
  • Hardening global crude oil prices present upside risk to inflation
  • Indian rupee showed resilience in the face of global spillovers
  • Current account deficit to be below 2 pc of GDP in current fiscal
  • Overall system liquidity remains in large surplus
  • RBI would continue to insulate domestic economy from global spillovers
  • RBI extends by 3 months on-tap liquidity facility of Rs 50,000 crore for healthcare, contact intensive sector
  • E RUPI digital voucher cap raised from Rs 10,000 to Rs 1 lakh and multiple-use permitted
  • Next meeting of the Monetary Policy Committee (MPC) is scheduled during April 6-8.
  • Benchmark indices opened higher today.
  • Sensex soared over 300 points to open at 58,810
  • Nifty gained 90 points to start at 17,554.10.
  • Metals, power and financial gained post RBI’s monetary policy announcements

!1 New UpdateClick here for latest updates

69% of adolescents aged 15-18 yrs have been administered 1st dose of COVID-19 vaccine; 14% given both doses: Govt

Presently, 141 districts have COVID-19 positivity rate over 10%; 160 districts have positivity rate between 5-10% in India: Govt

Supreme Court adjourns for Feb 24 a contempt case against fugitive businessman Vijay Mallya, granting him 2 weeks time as the last opportunity to appear before it personally or through counsel

Four states — Kerala, Maharashtra, Tamil Nadu, and Karnataka — have more than 50,000 active cases of COVID-19

11 states have active cases between 10,000 and 50,000: Luv Aggarwal, Joint Secretary, Union Health Ministry

Overall COVID19 situation is very optimistic. However, some states including Kerala, Mizoram, Himachal are still reporting a large number of cases. We cannot lower our guard

– Dr. VK Paul, Member-Health, Niti Aayog

Decline in COVID-19 infections, positivity across all states noted; Kerala, Maha, TN, Karnataka have over 50,000 active cases: Govt

Our country is a secular country and we should behave accordingly

– Maharashtra Deputy CM Ajit Pawar on Karnataka Hijab Row

We should avoid incidents that can further divide society. It’s unfortunate that some people are trying to gain political mileage out of it. Indian culture & Constitution don’t teach us to divide people on caste & religious lines

– On Hijab Row, Maharashtra Dy CM Ajit Pawar

We should avoid incidents that can further divide society. It’s unfortunate that some people are trying to gain political mileage out of it. Indian culture & Constitution don’t teach us to divide people on caste & religious lines.

– On Hijab Row, Maharashtra Dy CM Ajit Pawar

Such religious talks hinder opportunities for female students. Let’s keep politics out of schools & colleges. I’m a married woman, I put vermilion whenever I want, it’s a choice. As a society, we’ve no right to interfere in their personal choice

– TRS MLC K Kavitha, on Hijab Row

If other COVID variants don’t hit West Bengal, then we can think of reopening schools for primary classes on alternate days

– CM Mamata Banerjee

Rupee slips 11 paise to close at 74.95 (provisional) against US dollar

Sensex jumps 460.06 pts to end at 58,926.03; Nifty climbs 142.05 pts to 17,605.85

COVID-19: Himachal Pradesh Govt lifts night curfew, allows social/religious/cultural/political gathering with 50% capacity

Karnataka HC asks media not to report any oral observations and wait for the final orders

Hijab Row || Karnataka HC says, “We are considering the issue of whether the wearing of headscarf comes within the Fundamental Rights.”

“We are also considering whether wearing a headscarf is an essential part of the religious practice,” HC added.

Karnataka Hijab Row: Sanjay Hegde on uniform code

There is no provision for penalty for infraction of a uniform code. In Karnataka Education Act, penalties are largely for management: Senior advocate Sanjay Hegde, appearing for the petitioners

Hindalco Q3 net profit at an all-time high of ₹3,675 cr, up 96%

Hindalco’s consolidated net profit for the December quarter surged to an all-time high of ₹3,675 crore, rising 96% year-on-year, driven by a consistent performance by Novelis and an exceptional performance by India Business, equally supported by favorable macros, strategic product mix and an improved performance by the downstream business.

Bonds stage rally in India as RBI surprises with Dovish Policy

Bonds in India gained and the rupee fell after the central bank held back on a widely expected hike in a key rate, continuing with its benign policy stance amid a hawkish turn by most global central banks. The yield on five-year bonds fell 17 basis points to 6.20%, while that on 10-year note declined by ten points to 6.70%. The rupee fell as much as 0.4% to 75.0687 against the dollar to be Asia’s worst-performing currency on Thursday.

Multibagger stock down 11% in 5 sessions. ICICI Securities sees upside post Q3 results

Greaves Cotton (GCL) is leading diversified engineering company with a presence in automotive, non-automotive, aftermarket, retail, electric mobility solution and finance. The company recently reported mixed Q3FY22 numbers amid supply disruptions.

Russia ready to normalise relations with UK, says Lavrov

  • Russian Foreign Minister Sergei Lavrov said on Thursday Moscow was ready to normalise relations with the United Kingdom, ahead of talks with British Foreign Secretary Liz Truss at a time of heightened East-West tensions over Ukraine.
  • Lavrov described his meeting with Truss as “unprecedented”.

‘For durable recovery’: RBI’s MPC retains rates, accommodative stance

  • The Reserve Bank of India (RBI) on Thursday retained its key short-term lending rates during the sixth and final monetary policy review of FY22.
  • In his policy statement post the Monetary Policy Committee’s bi-monthly meeting, RBI Governor Shaktikanta Das said: “The MPC flagged the potential downside risks to economic activity from the highly contagious Omicron variant.”

Ministry of Health issues revised guidelines for international arrivals, to come in effect from 14th Feb

As we had expected, the MPC and RBI maintained a full status quo, on the stance, repo rate and reverse repo rate, with no change in the voting patterns of the six members. The tone of the policy review appeared sanguine on domestic inflation and cautious on growth, with a view to not sacrificing the latter in a futile attempt to control imported inflation.

– Aditi Nayar, Chief Economist at ICRA

In our assessment, we are not behind the curve; our domestic economic factors are different from rest of world.

– RBI Governor Shaktikanta Das

As far as cryptocurrencies is concerned, the RBI stance is very clear. Private cryptocurrencies are a big threat to our financial and macroeconomic stability. They will undermine RBI’s ability to deal with issues related financial stability. I think it is my duty to tell investors that what they are investing in cryptocurrencies, they should keep in mind that they are investing at their own risk. They should keep in mind that these cryptocurrencies have no underlying (asset). Not even a tulip!: RBI Governor Shaktikanta Das

RBI Deputy Governor T. Rabi Sankar on Central Bank Digital Currency (CBDC)

  • Work on both wholesale and retail models of CBDC is ongoing. Which model is tested first will be decided later.
  • We are not working with any external agencies when it comes to the CBDC. We are working with the CBDCs in our eco-system. Any decision to engage with any other agencies will be taken later.
  • We are open to trying out all possible technologies for CBDC. It depends on the use case. So it won’t be one or the other.

I won’t spell out a particular level for government bond yields. But our actions will show what yield level we are comfortable with. One must keep in mind that NHAI is not borrowing from market in FY23, as per Budget. The government will support it with around Rs 65,000 crores. Further, I have heard that small savings collections can be higher. These factors should be kept in mind when talk of the government’s market borrowing. But let next financial year come first: Governor Shaktikanta Das

Work on Central Bank Digital Currency is ongoing. Once the law, as proposed, is amended, we can go ahead with our proofs of concept and pilot projects: RBI Deputy Governor T. Rabi Sankar

We can’t give a timeline on CBDC. But what I can say is that whatever we are doing, we are doing it very carefully and cautiously. We have to keep risks like cyber-security and counterfeiting in mind. So we are proceeding cautiously and can’t give a timeline: Governor Shaktikanta Das

Key points from RBI Governor’s presser

Key points from RBI Governor's presser

Here’s what RBI’s Deputy Governor Michael Patra said:

  • The character of inflation is very different in the United States than ours. There is a material difference in the way in which our inflation is evolving.
  • At the current time, the repo and reverse repo rates reflect our stance. What we do going forward will be a calibrated and well-telegraphed approach.

It is not a question of either fiscal or monetary policy. Fiscal action is calibrated. They (government) have expanded capital expenditure. I can see fiscal consolidation. They are on a particular roadmap. It is coordinated action between fiscal and monetary policy. It is not like we pass on the baton to another, says RBI Governor

Our inflation projections are benchmarked to international crude oil prices. We have examined various senarios of where oil prices could be: Governor Das

The way we handle the government borrowing, that reflects the RBI’s approach. Now, the yield curve has gone up, yes. Perhaps, I don’t know, the market was judging that the inflation trajectory would be much higher. But we have given our inflation trajectory today… The way we deal with G-Sec auctions, that reflects the thinking of the Reserve Bank: Governor Shaktikanta Das

Inclusion in global bond indices can work in both ways. This is precisely the reason the RBI and the government is taking a very calibrated approach on this: Governor Shaktikanta Das

We have constant interactions with the bond market. Whether they have an inherent reluctance (to bid at weekly G-Sec auctions), you have to ask them… At least me and my colleagues have not seen any sign of “discomfort”: Governor Shaktikanta Das

We expect a smooth re-balancing of liquidity conditions. Our actions have been very seamless and not caused any volatility. So I do not see any undue volatility in money markets: RBI Deputy Governor Michael Patra

Main points from Shaktikanta Das’ presser

Main points from Shaktikanta Das' presser

Monetary policy has to be supportive to ensure growth is sustainable

– RBI Governor

The repo and reverse repo rate represent a particular stance. At the current juncture, when stance continues, there is no reason to make any changes or tamper with rates, says Das

Inherent growth momentum is positive, says RBI Governor

The somewhat comfortable inflation trajectory provides RBI space to withdraw monetary support only gradually and reduces the need of any sudden tightening actions. We expect the RBI to support growth and raise the repo rate only by the August policy once there are greater signs of a more even recovery.

– Sakshi Gupta, senior economist at HDFC bank in Gurugram

MPC Highlights

MPC Highlights

It looks like interest rates on home loans, car loans are unlikely to go higher this year, says SBI chairman Dinesh Kumar Khara.

It seems the RBI gauged that markets need to be assuaged over material tightening of financial conditions ahead as global dynamics change, and decided to stay put

– Madhavi Arora, lead economist, Emkay Global Financial Services

Impact on loans

  • With no change in the policy rates there will be no immediate impact on the EMIs of your home loan, auto loan and personal loan. Lenders will typically prefer to take some time in taking a call about any possible rate change in future, based on their own financial position and their expectation about the interest rate movement.

Markets cheer as Das refuses to “rock the boat”

  • Sensex climbs over 400 points post RBI policy outcome; Nifty crosses 17,580 points

Consistency maintained in Budget as well as monetary policy. Expect bond yields to cool down further post monetary policy announcement

– SBI chairman Dinesh Kumar Khara

Rupee slips 21 paise to 75.05 against US dollar in early trade

  • The rupee declined 21 paise to 75.02 against the US dollar in opening trade on Thursday after the Reserve Bank of India kept benchmark lending rate unchanged and said it will continue with the accommodative stance.
  • At the interbank foreign exchange, the rupee opened flat at 74.90 against the US dollar, then slipped further to 75.05, registering a decline of 21 paise from the last close.

Growth and inflation outlook

Growth and inflation outlook

MPC Meet: Key points

  • MPC has decided to keep benchmark repurchase (repo) rate at 4 per cent
  • The reverse repo rate will continue to earn 3.35 per cent interest for banks for their deposits kept with RBI
  • RBI retained its growth projection at 9.2 per cent and inflation at 5.3 per cent for the current financial year
  • E RUPI digital voucher cap raised from Rs 10,000 to Rs 1 lakh and multiple-use permitted
  • CPI inflation projection retained at 5.3% for FY 2021-22, and 4.5% for FY 2022-23
  • VRR and VRRR of 14 day tenor – will operate as main liquidity management tool
  • Variable rate repo operations of varying tenors will henceforth be conducted as and when warranted.

Closing Remarks

  • Governor Das cited late Lata Mangeshkar saying her song ‘Aaj phir jeena kee tamana hai’ encapsulates what the RBI has been trying to do. We, in the RBI, have remained steadfast in ensuring trust in domestic financial system, he said. This has been an anchor in ocean of uncertainty, he added. Closing with words of Mahatma Gandhi, Das said that “satisfaction lies in the effort. Full effort is full victory.”

E RUPI digital voucher cap raised

  • The RBI has enhanced the cap on e-rupee vouchers from Rs 10,000 to Rs 1 lakh. These vouchers can now be used more than once. The e-rupee had been launched last year by the NPCI.

Overall system liquidity in large surplus even though it has moderated, says Das

Overall system liquidity in large surplus even though it has moderated, says Das

RBI would continue to insulate domestic economy from global spillovers

– RBI Governor Das

Breaking| Limit for inflows under the Voluntary Retention Scheme hiked to Rs 2.5 lakh crore from Rs 1.5 lakh crore. Move will provide additional sources of capital for domestic debt markets, including government securities.

VRR and VRRR of 14 day tenor – will operate as main liquidity management tool

  • Variable rate repo operations of varying tenors will henceforth be conducted as and when warranted. Second, variable rate repos and variable rate reverse repos of 14-day tenors will operate as the main liquidity management tool. Third, these operations will be aided by fine turning operations. Fourth, with effect from March 1, the fixed rate reverse repo and Marginal Standing Facility will only be available from 5:30-11:59 PM on all days, says Governor Das.

Capacity utilisation is rising, aiding in investment demand. RBI maintains CPI inflation forecast of 5.3 percent for FY22. RBI forecasts FY23 CPI inflation at 4.5 percent. RBI forecasts Q1FY23 CPI at 4.9 percent, Q2 at 5 percent, Q3 at 4 percent and Q4 at 4.2 percent. CPI is in-line with expectations and food prices easing to add to the optimism, Hardening crude oil prices is a major upside risk. Transmission of costs remains muted on slack in demand. Banks should strengthen governance and risk management, says Governor Shaktikanta Das

Big worry: Bonds take a hit

Big worry: Bonds take a hit

Read More: Hijab Karnataka News LIVE Updates: Karnataka HC asks media not to report any oral

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