FII flows, dollar index among key factors to dictate market move this week

FII flows, dollar index among key factors to dictate market move this week

Benchmark indices showed exuberance on Friday after the Reserve Bank of India hiked key policy rates on expected lines. Nifty gained over 275 points to close at 17,094, while Sensex climbed more than 1,000 points to end the week at 57,426. Nevertheless, on a weekly basis, benchmark indices registered a fall of over 1%. The … Read more

Massive currency market intervention may not impact monetary policy independence: Report

Massive currency market intervention may not impact monetary policy independence: Report

Massive interventions by the Reserve Bank of India (RBI) to contain the value of the rupee may not impact the independence of monetary policy, though it can have an impact on the money supply in the system, a study by the central bank said. Forex market interventions during surges in capital flows to contain the … Read more

RBI may raise repo rate by 50 bps this week

RBI may raise repo rate by 50 bps this week

The Reserve Bank of India is likely to deliver a fourth consecutive policy rate hike this week, with a half-percentage point increase, joining global central banks that are raising rates sharper than estimated to cushion inflation-battered consumers. According to an ET poll conducted among 20 banks, fund managers and financial institutions, the RBI Monetary Policy … Read more

Policy amended, international trade can now be settled in Rupee

Policy amended, international trade can now be settled in Rupee

The government has amended the Foreign Trade Policy to allow international trade invoicing, payment and settlement in the Indian rupee, activating the mechanism announced by the Reserve Bank of India (RBI) to facilitate trade in the domestic currency. The Directorate General of Foreign Trade (DGFT) under the Ministry of Commerce and Industry on Friday notified … Read more

India’s trade with Russia in rupees to begin soon: FIEO President

India’s trade with Russia in rupees to begin soon: FIEO President

Trade with Russia in rupees will soon start as top lender State Bank of India has agreed to facilitate the new mechanism, the Federation of Indian Export Organisations (FIEO) president A Shaktivel said on Wednesday. India’s exports to Russia took a hit after the West imposed sanctions on Moscow for its late-February military offensive against … Read more

Indian 10-year yield may fall to 7% on index inclusion, cheaper oil: Federal Bank

Indian 10-year yield may fall to 7% on index inclusion, cheaper oil: Federal Bank

India’s 10-year benchmark bond yield may ease to a five-month low of 7% if the country’s bonds are included in global indexes and oil prices fall further, the treasury head of private sector lender said. “The 10-year yield may trade in the 7.00%-7.40% range in the near term,” V Lakshmanan said, adding that yields could … Read more

Indian rupee at fair value despite balance of payment problems: JPMorgan analyst

Indian rupee at fair value despite balance of payment problems: JPMorgan analyst

The Indian rupee‘s fair value is around 80 against the U.S. dollar, given the country’s balance of payment challenges and the Reserve Bank of India‘s interventions, JPMorgan‘s head of emerging Asia local markets strategy said. India‘s balance of payments, a measure of how much the country relies on money from abroad, has been squeezed by … Read more

FPIs stock holding slips 14% to $523 bn in Jun quarter: Report

FPIs stock holding slips 14% to $523 bn in Jun quarter: Report

The value of the foreign portfolio investors (FPI) holdings in the domestic equities dropped 14 per cent to USD 523 billion in the three months ended June 2022 from the preceding quarter, according to a Morningstar report. This was the third consecutive quarterly decline in the value of FPIs‘ investments in Indian equities. Foreign investors … Read more

Q1 GDP growth seen at 14-15% on services’ revival

Q1 GDP growth seen at 14-15% on services’ revival

The Indian economy likely grew at 14-15% in the first quarter of the current fiscal year, riding a recovery in contact-intensive sectors even as the rest of the economy held firm despite multiple headwinds, a poll of economists indicated. While uncertainty still looms, economists say the worst may be over. GDP data for the first … Read more