Top headlines: Lending rates to rise, half a dozen IPOs in May after LIC

Business Standard brings you the top headlines at this hour

The Federal Reserve’s policy-making Federal Open Market Committee on Wednesday voted unanimously to increase the benchmark rate by a half percentage point. Meanwhile, after Reserve Bank of India raised repo rate, interest rates on deposits are expected to move upwards. Scroll down below to read the top stories from Wednesday

Fed hikes rates half point, will shrink assets to curb US inflation

The Federal Reserve raised interest rates by the steepest increment since 2000 and decided to start shrinking its massive balance sheet, deploying the most aggressive tightening of monetary policy in decades to control soaring inflation.

The U.S. central bank’s policy-making Federal Open Market Committee on Wednesday voted unanimously to increase the benchmark rate by a half percentage point. Read more here

Lending rates set to rise; interest rates on deposits may also move up

The days of ultra-low interest rates are over. With the monetary policy committee (MPC) raising the repo rate by 40-basis points to 4.40 per cent on Wednesday, the interest rate cycle has turned. Consequently, lenders will revise their lending rates upwards, especially on loans, which are linked to an external benchmark.

Interest rates on deposits are also expected to move upwards, bringing some relief to the common man. Read more here

Ambuja acquisition could be LIC's windfall; acquirer to make open offer

A big bonanza awaits Life Insurance Corporation (LIC) of India, which owns a minority stake of Rs 7,047 crore in both Ambuja Cements and in its subsidiary ACC, with a new owner taking over India’s second-largest cement company. LIC owns 6.3 per cent stake worth Rs 4,602 crore in Ambuja Cements and 5.66 per cent stake worth Rs 2,445 crore in ACC.

Banking sources say LIC and other shareholders will have the option to exit both companies at a huge profit once the acquirer makes an open offer for them. Read more here

Half a dozen IPOs in May after LIC; Rs 28,960-crore projected mop-up

At least half a dozen companies, besides Life Insurance Corporation (LIC) of India, are looking to raise Rs 7,960 crore through their initial public offerings (IPOs) this month. The Rs 21,000-crore IPO of LIC opened on Wednesday.

Total funds raised could reach Rs 28,960 crore, making May the best month for IPO fund-raising after November 2021. Read more here

Reassessment dispute case: SC rules in favour of Revenue Department

The Supreme Court (SC) on Wednesday ruled in favour of the Revenue Department in the reassessment dispute case. The top court reversed the earlier high court orders that had quashed income-tax notices issued after March 31, 2021, under the old reassessment regime.

The SC ruling has come as a setback for thousands of taxpayers who had got favourable orders from several high courts on reassessment. Read more here