Data showing foreign institutional investors have slowed their purchases in domestic shares further added to the weak sentiment.
India plans to launch trading of government bond futures within the next two months as part of efforts to deepen its financial markets, according to several sources involved in the discussions with the central bank.
The central bank said such loan products, popularly called 80:20 or 75:25 schemes, are likely to expose the banks as well as their home loan borrowers to additional risks.
The problems are being compounded by perceptions that India is ill suited to defend the currency in the near-term.
SEBI has raised the investment limits for foreign investors.
RBI will auction Rs 1,000 crore worth of these bonds next Tuesday.
Can the Indian hedge fund managers convince the wealthy to take up the expensive investment strategy?
While the country imposed limits, it also eased and simplified other restriction to attract foreign inflows. This is done to plug record current account deficit.
It believes that BSE Sensex will reach 22,500 by December-end.
Higher food prices can accelerate broader inflation by pushing up wages, while negatively impacting the government finances and reducing monetary policy flexibility, Moody's said in a report.
Says the TRC proposal was clumsily worded.
Expected cut in withholding tax for debt investments.
It believes that there had been "little progress" in structural reforms.
The warning late on Wednesday came as a surprise given Tata shares hit a record high earlier this month on a rally sparked by expectations for improving sales at JLR, especially in the key China market, and optimism about the launch of new models.
It said that the company encourages "chronic under-performers" to leave as part of its staff management.
The software services provider looks to cut costs and boost sales.