Top headlines: RBI raises repo rate by 40 bps, mega LIC IPO opens

Karnataka Chief Minister says Amit Shah will communicate to him on BJP central leadership's decision reshuffling the state cabinet

The Reserve Bank of India's monetary policy committee (MPC) raised the repo rate by 40 basis points on Wednesday, in a surprise move, as it sought to take calibrated steps to exit the extraordinary accommodation and contain rapid inflation. The initial public offering of Life Insurance Corporation opened up for subscription. Around 27% of the shares were subscribed in the first two hours. 
 

In a surprise move, RBI raises repo rate by 40 bps to 4.40 per cent
 

The central bank’s monetary policy committee (MPC) on Wednesday voted unanimously to increase repo rate by 40 basis points (bps) in an off-cycle meeting to tame inflation, which has remained elevated for some time now. The repo rate has been increased for the first time since August 2018. 

The repo rate, after the surprise move, now stands at 4.40 per cent, with immediate effect. Consequently, the standing deposit facility (SDF) rate stands adjusted to 4.15 per cent; and the marginal standing facility (MSF) rate and the Bank Rate to 4.65 per cent. Read more
 

LIC IPO sees 27% subscription in two hours, muted non-institutional demand
 

The initial public offering of insurance behemoth Life Insurance Corporation (LIC) opened for subscription on May 4 and by the first two hours, around 27 per cent of the shares up for sale were subscribed, with policyholders and employee’s driving the subscription along with retail investors.

At 12:00 noon, policyholders had subscribed 95 per cent of the shares reserved for them, employees had bid for 46 per cent of the shares reserved for them, and retail investors had subscribed to 30 per cent of the shares reserved for them. Read more

India wants Russia to discount its oil to below $70 a barrel amid war
 

India is trying to get deeper discounts on Russian oil to compensate for the risk of dealing with the OPEC+ producer as other buyers turn away, according to people with knowledge of the matter.

The South Asian nation is seeking Russian cargoes at less than $70 a barrel on a delivered basis to compensate for additional hurdles, such as securing financing for purchases, in high-level talks between the two countries, said the people, asking not to be identified as discussions are confidential. Global benchmark Brent is currently trading near $108 a barrel. Read more
 

Amit Shah will let me know about cabinet expansion or reshuffle: Bommai
 

Karnataka Chief Minister Basavaraj Bommai on Wednesday said Union Home Minister Amit Shah will communicate to him on BJP central leadership's decision about expansion or reshuffle of the state cabinet.

Shah was in the city on Tuesday, during which he took part in various events, and attended lunch at Bommai's official residence where he was closeted with select state BJP leaders. Read more

Govt revises wheat production estimate downwards by 5.7% to 105 mn tonnes
 

The government has revised downwards the estimate for wheat production by 5.7 per cent to 105 million tonnes in the 2021-22 crop year ending June from the earlier projection of 111.32 million tonnes, as the crop productivity has been affected due to the early onset of summer. Read more