BusinessLine Podcasts

BL morning report: October 2, 2025


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1.Reserve Bank of India expectedly left its key interest rates unchanged on Wednesday as it waited for greater clarity on the impact of US tariffs as well as playout of earlier rate cuts and recent tax reductions.


RBI Governor Sanjay Malhotra, however, signalled scope for easing in the coming months to support the economy from any possible hit from US tariffs.


The six-member monetary policy committee voted unanimously to keep the repurchase rate unchanged at 5.5 per cent and decided to continue with a "neutral" policy stance, giving it flexibility to move in either direction if needed in future.


The rate-setting panel, headed by the central bank governor and comprising half of external experts, had cut interest rates by a total of 100 basis points this year before hitting a pause at its previous bimonthly meeting in August.


The Reserve Bank of India (RBI) has decided to remove the ₹10,000 crore ceiling imposed on bank loans to each corporate entity and said if concentration risk increases, the regulator will take macro-prudential measures to tackle the same.


The Reserve Bank of India (RBI) is also expected to soon issue Expected Credit Loss (ECL) norms for banks and all-India financial institutions to align Indian banks’ provisioning norms with global standards.


2.South Korean electronics giant LG Electronics Inc will sell shares worth up to ₹11,628 crore through the initial public offer of its India arm, in which it will offload up to 10.2 crore shares.

This values LG Electronics India at around $8.6 billion at the upper end of the price band of ₹1080-1140 per share. The company had obtained regulatory approval for the IPO in March but in April decided to call a halt to it, citing uncertain market conditions. The issue is open October 7-9, while the anchor book is open October 6. Investors can bid for a minimum of 13 shares.


3.India's manufacturing sector expansion lost some momentum last month, slipping to its weakest pace in four months but remaining strong, while factory gate prices surged at the fastest rate in nearly 12 years to combat mounting input costs, a survey showed on Wednesday.


HSBC's India Manufacturing Purchasing Managers' Index (PMI), compiled by S&P Global, fell to 57.7 in September from August's more robust 59.3 and lower than a preliminary reading of 58.5, reflecting the slowest improvement in operating conditions since May.



4.The government on Wednesday announced a 6.59 per cent increase in the minimum support price (MSP) for wheat to ₹2,585 per quintal for 2026-27 marketing year.

The decision was taken in the Cabinet meeting chaired by Prime Minister Narendra Modi here.

Last year, wheat MSP was fixed at ₹2,425 per quintal for 2025-26 marketing year.

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