Given the relative rates of gross domestic product growth, the differential will increase.
Markets ended in red; index heavyweight under pressure.
The rupee recovered by 11 paise to trade at 60.84 against the US dollar in early trade today on selling of the American currency by banks and exporters.
EM asset classes could rally if the pace of US Federal Reserve rate increases moderates.
RBI Governor Raghuram Rajan expressed anguish at the banks' reluctance to pass on benefits of the earlier rate cuts.
Analysts say that the focus now shifts to global events
Though valuations have moderated, they are still above average.
The Nifty closed at 10,335.30, down 28.35 points, or 0.27 per cent.
Global brokerage firm CLSA is positive on India's growth stroy.
Oil edged up on Tuesday, steadying after a 5 per cent plunge in the previous session that saw prices touch fresh 5-1/2-year lows in an oversupplied market.
Macro and micro environment are becoming more challenging.
In October, CPI inflation was 5 per cent.
Foreign portfolio investors have been net positive since the Union Budget
Nobutaka Kitajima, chief investment officer -- equity, LIC Nomura Mutual Fund, tells Business Standard the reaction to the Fed's statements has been overdone and the current downturn has punished certain stocks much more than their inherent economic worth and business potential.
The Reserve Bank in its first mid-quarter policy review on Monday kept the key interest rates unchanged because of elevated food inflation, rupee depreciation and uncertainty over foreign fund inflows.
LIC is on board after tying up with all five insurance repositories; 1,50,000 e-Insurance Accounts opened across India till date.
The risk-reward ratio could turn adverse for foreign investors if corporate earnings disappoint by wide margins, or if crude oil prices spike in the international market, putting pressure on the rupee-dollar exchange rate.
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Bank has cited trend of global easing and weak growth
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The newly-appointed Governor Raghuram Rajan said on Wednesday Reserve Bank of India will offer a window to banks to swap the fresh FCNR-B dollar funds, mobilised for a minimum tenor of three years and over, at a fixed rate of 3.5 per cent per annum. According to Bank of America Merrill Lynch, "the move should fetch $8-10 billion", adding that the move would help in shifting rupee risks away from NRIs at a time of extreme volatility.
'A positive oil shock has a detrimental effect on growth and activity.'
India's GDP for the three-month period ended September 30 grew 7.4%.
Repo rate may well end 2013 at 8 per cent, where it had begun the year.
Combining affordable IT with native Indian ingenuity and entrepreneurship F C Kohli believed would enable Indian small businesses match anyone and thrive.
'It is in electronics that the gap between where we are and where we need to be is most obvious and most persistent.' 'It is not only a national security issue, but also a commercial issue,' argues Rajeev Srinivasan.
Investors not stop their SIPs or STPs due to election-related uncertainty.
ICICI Bank and SBI were among the top Sensex gainers along with FMCG majors ITC and HUL.
While the RBI can nudge things along, ultimately bank owners must recapitalise and review internal processes to ensure that a culture of irresponsible lending doesn't continue, says Devangshu Datta.
In the global markets, the US dollar traded lower in early trade after former US Treasury Secretary Larry Summers withdrew himself from the race to be the next Federal Reserve chairman.
Top 5 losers include Lupin, Cipla, Sun Pharma, Dr Reddy's Lab and GAIL down 1.6%-11%.
Foreign investors keeping off; inflows into bonds also likely to improve if RBI resumes rate cuts.
Broader market outperformed the benchmark indices with S&P BSE Midcap gaining over 1%
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Some analysts believe that markets are expected to remain unclear and would have to wait until tomorrow's US non-farm payrolls data.
Mr Swamy has written letters to the Prime Minister's Office asking for Mr Rajan's services to be terminated.
With the frontline Indian benchmark indices trading near all-time highs ahead of the general elections that begin later this week, Marc Faber, Editor and Publisher of "The Gloom, Boom & Doom Report" tells Puneet Wadhwa that the Indian stock market is relatively expensive, especially the index (large-cap) stocks.
Experts believe there are more such decisions in the offing, which along with a recovery in economic growth and India Inc.
India's macroeconomic environment is improving, but it is still not past the point where it can ignore the developments in the global markets
Sensex witnessed the biggest single day gain since May 2009 in absolute terms.
The second half of June could be driven more or less by technical factors triggered by news flow from Greece, the US Federal Reserve and the monsoon. The technical picture seems bearish as of now, says Devangshu Datta.
Concerns related to capital outflows in the aftermath of the first US interest rate hike in nearly a decade predominantly weighed on the rupee trade.
Governor Rajan can be more unambiguously pro-growth.
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