RBI rate cuts by 50 bps - Mr. Ratul Puri, Chairman, Hindustan Powerprojects

RBI has cut the repo rate today. Mr. Ratul Puri's (Chairman, Hindustan Powerprojects) observations on the development's impact:

"RBI's move to cut repo rate by 50 bps to 6.74 per cent implies opportunities for increased investments in the private sector and a game-changer for the economy. This would provide a fillip to growth in the sector by addressing concerns around continuing domestic capacity under-utilisation. We are hopeful that the transmission of these cuts would eventually boost investor confidence and meet the demand supply gap in the market. This is a welcome move for the power sector and our company since we recently signed an agreement with IIFCL for issuance of secured and redeemable non-convertible debentures under IIFCL's 'Regular Credit Enhancement Scheme'. We are hoping that with the rate cut, the corporate bond yields are likely to soften down."

Source : Equity Bulls

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