New Delhi: Foreign investors continue to desert Indian equity markets and pulled out close to Rs 46,000 crore so far this month following monetary policy tightening by the Reserve Bank and US Federal Reserve, high oil prices and volatile rupee. The net outflow by foreign portfolio investors (FPIs) from equities reached Rs 2.13 lakh crore … Read more
Central banks have ramped up their battle against runaway inflation, a necessary remedy that could have the adverse side effect of tipping countries into recession, analysts say. Just this past week, the US Federal Reserve announced its biggest interest rate hike in almost 30 years, followed by the fifth straight increase by the Bank of … Read more
Foreign direct investment (FDI) has been rising annually in contrast with the heavy selling by foreign portfolio investors (FPIs) in recent times. Gross FDI inflows were at $83.6 billion in FY22, surpassing $82 billion a year earlier. It stood at $74.4 billion in FY20. Services and manufacturing sectors accounted for a major share of FDI … Read more
Central bank actions usually calm nerves. But the Reserve Bank of India‘s unexpected 40 basis points increase in policy rates has rather rattled the market. An interest rate increase per se wouldn’t have been shocking given the price pressures that have been building up and the actions of other central bankers in the past few … Read more
RBI Governor Shaktikanta Das will make a statement today at 2 p.m. in the backdrop of global inflationary concerns posing a challenge for India‘s recovery. It is not clear what the RBI Governor will address in his speech. The address by the governor comes ahead of the US Federal Reserve outcome as it is likely … Read more
Taper is behind, but tightening is ahead. That is a subtle one-liner that captures what to expect from the US Federal Reserve going forward. On taper, the US Fed stuck to its schedule. It began the program in early January and quickly finished it by winding down new bond purchases to zero by end of … Read more
Rising global commodity prices, led by crude, coal and metals, will shave a lot off the current account leading to higher imports and a rise in current account deficit, which is likely to print at 1.3 per cent of the GDP or USD 40 billion, up from 0.9 per cent surplus last fiscal, according to … Read more
The past week has been yet another massively volatile week for the cryptocurrency market. The sleeping giant Bitcoin finally woke up and crossed the $55,000 mark marking a period of massive rally. Most of the other altcoins followed the momentum in the largest cryptocurrency. The largest altcoin, Ether, went past the $3600 mark. A message … Read more
With the US Federal Reserve and the Bank of England hinting at normalisation, factoring in a more enduring nature of the ‘transient’ high inflation, RBI’s statement appears more dovish in comparison. If indeed the duration of high inflation is longer, RBI may need to re-think its GSAP purchases and start normalising the extant liquidity deluge, … Read more
MUMBAI: Despite the dovishness expressed by the US Federal Reserve on Wednesday and what has been a reasonably strong June quarter earnings season, Nifty50 has found it beyond itself to break past the 16,000 mark. Analysts say as concerns over India’s economic recovery rise in the wake of International Monetary Fund’s GDP growth downgrade and … Read more