The NSE Nifty also closed at 16- month high at 4,958, up 66 points. US markets rose to calender year high on Tuesday after strong manufacturing and retail sales boosted commodity prices and shares of material companies.
On September 4, at a time when the rupee was the worst performer among Asian currencies, Raghuram Rajan took charge as RBI's governor.
American President Barack Obama on Tuesday extended the tenure of US Federal Reserve Chairman Ben Bernanke by another term.
Investor wealth too fell by nearly Rs 7 lakh crore during 2015-16 or over Rs 2,700 crore per trading session.
The US Fed has also retained its benchmark rates for the Federal funds in the range of zero to 0.25 per cent, as part of its efforts to help in boosting the economy. After its two-day monetary policy meeting, which ended on Wednesday, the Fed said that 'economic activity is leveling out'.
Grand schemes for macroeconomic policy coordination have a mixed record.
The bottom line is that a change in the RBI's monetary stance by cutting rates is imminent. The choice is only one of timing. Recent global developments reinforce the signals from emerging domestic patterns, tilting the case of a rate cut now rather than later.
The US Federal Reserve late on Tuesday slashed its lending rate from 1 per cent to zero to 0.25 per cent.
More and more students are going to colleges abroad to get international exposure. Here's how to plan and live your dream.
Top gainers in the Sensex pack included Bharti Airtel, Tata Motors, IndusInd Bank, Kotak Bank, Hero MotoCorp, Asian Paints and PowerGrid, which rose up to 2.53 per cent.
For the next two years the whole world, including India, is expected to reel under the effect of the current financial crisis. Here's how it will affect us in India.
"Manmohan Singh is a highly reputable reform-oriented economist, but he does not have the authoritarian clout that enabled Deng Xiaoping to start China's agricultural reform in 1978," says Alan Greenspan, former chairman of the US Federal Reserve.
The US Federal Reserve on Tuesday cut interests rates by 0.75 points from 3 per cent to 2.25 per cent. The cut initially disappointed markets which had risen sharply on hopes of a 1 percentage point cut. The decision was taken by eight votes to two. First quarter earnings at the two Wall Street firms fell less than analysts had expected, easing concerns about the state of the investment banking sector.
In August, the Fed announced that it would develop a "new interbank 24x7x365 RTGS with integrated clearing functionality to support faster payments in the United States". The Fed Board asked for comments on FedNow by November. In reply to this, Google mentioned its experience of launching Google Pay -- Google's payments app which uses the UPI -- in India.
The Federal Reserve's move comes a week after it trimmed 0.75 per cent of the fund rate owing to concerns that the US economy was headed towards a recession.
Weakness in the greenback overseas against the backdrop of sluggish US macro data outcome helped the home currency move higher
In the new decade, the scene will change because the banks till recently had been challenged by the fintechs, but the techfins have now entered the arena, observes Tamal Bandyopadhyay.
Silver also slipped below the Rs 41,000-mark by falling Rs 525 to Rs 40,975 per kg on reduced offtake by industrial units and coin makers
Silver also rose by Rs 100 to Rs 37,400 per kg.
What is killing the risk appetite of the bond buyers is the inconsistency in the central bank's approach. It needs to allow the yield to find its own level, gradually. To ensure that, the RBI may adopt a similar approach with which it handles a slipping rupee, asserts Tamal Bandyopadhyay.
Whatever it be, an official statement from you clearly defining the extent of the problem, would be in order. At least that in my opinion, sir, would put an end to the uncertainty that is plaguing the financial markets all across the globe. And, sir, as you know, markets abhor uncertainty, for lack of trust is highly corrosive.
The Nifty has gained 2.6% so far this week, while the Sensex has climbed 2.85%
More interest rate cuts by the US Federal Reserve to protect its slowing economy are likely to strengthen gold prices further with the metal being a safe haven for investors having offered handsome returns in the last year-and-a-half.
Given below, in the table, are the estimated losses that some of the world's largest banks have suffered on account of home loan defaults in the US.
In August 2014, imports stood at $ 2.06 billion. Higher imports will have adverse bearing on India's current account deficit (CAD).
'It was because of the huge selloff in the Indian equities that the rupee fell so sharply against the dollar on Friday.'
Overconfident, overpaid and everywhere - the 2007 vintage of MBAs.
Strong demand for housing loans and stable real estate prices augur well for housing finance companies. Though the stocks are not cheap, they make good long-term investments.
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Dealers cited some dollar selling by state-run banks in the session, which some said may be on behalf of the central bank.
The P-Note clarifications and re-clarifications brought the markets back to their roaring mood during the latter part of the last week. Further, 'in line' September quarter results also aroused positive sentiment as the Sensex, the most followed stock index in the country, gained nearly 10 per cent week-on-week.
Overseas markets are already hit by an acute dollar crunch, which is why major central banks, the US Federal Reserve, the European Central Bank and the Bank of England, had to infuse funds into the market. These lines of credit are over and above the stand-by credit, which is usually maintained by foreign banks with the Indian banks.
While FIIs have pumped in nearly Rs 17,000 crore, MFs have been net buyers to the tune of Rs 9,000 crore.
Political risk culminating from elections in the US and Latin America, and evolving right-wing populism in Europe could lead to substantial volatility, say Abheek Barua & Tushar Arora.
Unprecedented as it is, this steep cut in the interest rates effected by the Fed has the potential to dynamite the US dollar, the US economy and, by extension, the global economy.
On one hand, the RBI will have to initiate measures to contain inflow of foreign capital -- which is expected to increase as an after effect of the Fed rate cut, on the other it will need to ensure that such inflows do not fuel inflationary pressures.
Since the burden of 'reserve' tax has fallen primarily on SMEs as they depend on bank finance, a further hike in its Cash Reserve Ratio will definitely hit the SMEs and small savers.
Index majors NTPC, BHEL, Reliance Reliance Energy, Reliance Communications and HDFC, DLF, TCS, SBI and Bajaj Auto have zoomed.
Some profit taking towards the end saw the Sensex pare gains and finally settle at 17,594 - up 5.2% (864 points) - third best single-day gain ever. Thus, the index today broke its seven-day losing streak wherein the index had shed 19% (4,097 points). The NSE Nifty gained 304 points to close at 5,203.
The cut is being seen as an emergency measure to boost the US economy.
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