Growth remains weak, inflation is within 2-6% range, rate cut would help recoup forex reserves
The US Fed will decide if it should raise interest rates from near-zero levels first time in a decade.
FPIs would be classified into two categories instead of three, while the requirements for issuance and subscription of offshore derivative instruments would be rationalised.
The broader Nifty too fell for the second straight session and closed with a loss of over 62 points, or 0.54 per cent, at 11,520.30, after hovering between 11,496.85 and 11,602.55.
Rupee hits 2-month low against dollar on US rate hike fears.
Today, it holds $131 billion in assets under management.
The new norms provide an operational framework for FPIs, a new class of overseas investors that club all existing class of investors like foreign institutional investors and Qualified Foreign Investors.
The Budget emphasises on capacity building and empowerment of marginalised sections of society including farmers.
The rupee surged to its highest level in five weeks to end at 65.58 by gaining 38 paise against the US currency.
A host of factors including the reform measures taken by the government and decline in global oil and commodity prices have led to lower inflation, the Finance Ministry said on Wednesday.
The rupee closed at Rs 66.21 in its last trading session.
'As the growth momentum reverses benefiting from re-monetisation, it will be accompanied by a rise in inflation.'
As and when the GST comes in, Budget projections will have to be unbundled and revised. In fact, the pragmatic decision would be to present another Budget! This makes the passage of the Finance Bill with its multiple unrelated amendments seem even more dubious, says Devangshu Datta.
'For those looking at forward-looking signals for the economy from the stock markets, the relative performance of small and mid-caps may be a better indicator of the future than the index levels of the narrower and more popular indices', says Neelkanth Mishra.
Various global and domestic factors had a sizable impact on the performance of the Indian markets
Besides higher tax outgo, P-note issuers are worried about operational difficulties
For current financial year, govt plans to borrow Rs 2.88 trillion in the first half of 2018-19, out of Rs 6.05 trillion planned for entire year
Since December 2018, monetary policy has been eased substantially by RBI with policy rates being cut by 75 bps and policy outlook being changed to 'accommodative'.
'... Whether an incumbent is voted back or a coalition forms a new government except for a temporary disruption for a few weeks.'
Rupee hits 2-month low, down 21 paise against dollar.
Signing of the pact will hopefully end stock market uncertainty that came with the mention of the M-name
If the rupee falls further, it would negatively impact the dollar-based returns of foreign investors, and could influence foreign flows into India.
Being one of the early commentators to flag economic slowdown and caution investors on corporate earnings, Gautam Chhaochharia, head of India research, UBS Securities, in an interview with Hamsini Karthik says the markets remain in an expensive zone despite the recent correction.
According to the committee, single overseas investments of more than 10 per cent in a company should be considered as Foreign Direct Investment while those less than 10 per cent should be classified as foreign portfolio investment.
Indian economy was growing faster than the global average and all other major economies: FM
The Reserve Bank of India has already reduced the policy rate by a total of 75 basis points, or 0.75 per cent, since January.
The government would also take steps to promote exports and restrict non-essential imports, said Jaitley
Sitharaman further said that to mitigate genuine difficulties of start-ups and their investors, government has decided to withdraw angel tax provisions for them.
Central bank moves to infuse liquidity into bond market to help boost sentiment.
The government is also working on Euroclearing, the world's biggest bond settlement system, for Indian debt securities.
Currently, FPIs can invest up to $30 billion in Government securities, of which $5 billion is reserved for long-term investors.
Sebi is looking at further tightening the norms for P-Notes to address concerns raised by the Special Investigation Team on black money.
Auchan and another French retailer, Carrefour, exited India in 2014
Forex dealers said dollar's weakness against other currencies overseas supported the rupee.
Though valuations have moderated, they are still above average.
It's difficult to understand if GDP growth has actually improved.
Valuations are much higher than the consensus earnings expectations warrant and also much too high in historical terms, says Devangshu Datta.
'The Indian market has all the factors at the moment: Over-valuation, over-confidence, reliance on some source of massive fund flows and massive scams.' 'The trigger for a collapse could also have arrived.' warns Devangshu Datta.
It is the rupee's biggest single-day gain this year.
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