Devangshu Datta predicts the good, the bad and the ugly of currency trends for the coming year.
The Federal Reserve must now ensure that higher inflation doesn't derail the US recovery.
Kotak Bank was the top loser in the Sensex pack, shedding over 2 per cent, followed by ICICI Bank, PowerGrid, HDFC, IndusInd Bank and Axis Bank. NSE Nifty declined 45.75 points to 16,568.85.
Industrial countries cannot at this point wash their hands off developing economises and say we will do what we need to, and you do the adjustment you need to, says RBI Governor.
Not just India, but Asian peers such as Indonesia, South Korea, Thailand, Taiwan and The Philippines have seen sharp FPI outflows this year
'It was because of the huge selloff in the Indian equities that the rupee fell so sharply against the dollar on Friday.'
The BSE mid-cap and small-cap indices ended flat against Sensex's 0.4% up-move.
Given the impact Covid-19 pandemic had over the world economy, analysts expect global central banks, especially the US Fed, to keep the liquidity tap open, which, in turn, is likely to keep the equity markets, especially those in the emerging markets, buoyant.
'A time-wise, as well as price correction, so that the market can absorb the gains made over the past 17 months.'
The steep decline in commodity prices has reversed.
The 30-share Sensex closed 80 points lower at 21,753 levels while the 50-unit NSE Nifty index was down 38 points at 6486 levels. Benchmarks plunged to their lowest levels since March 06, 2014.
US Federal Reserve Chairper Janet Yellen hinted at raising interest rates sooner than expected, in her first press conference after assuming the top job at US central bank.
Top gainers in the Sensex pack included Tata Steel, Kotak Bank, NTPC, HDFC twins, PowerGrid and ONGC, rising up to 4.60 per cent.
Markets end in the red, midcaps in focus
The Reserve Bank of India (RBI) is likely to take a "more dovish" stance in its upcoming monetary policy review on December 2 and may go in for a cut repo rate in February, according to a British brokerage house report.
The Indian currency was tracking the non-deliverable forwards while lower stock futures also hurt sentiment.
China would contribute $41bn towards the pool. Brazil, India and Russia would contribute $18bn each; South Africa $5bn.
ONGC was the top gainer in the Sensex pack, rallying around 6 per cent, followed by IndusInd Bank, L&T, UltraTech Cement, Titan, SBI and NTPC. NSE Nifty settled 32.10 points up at 14,707.80.
Everything seems to be falling in place for the new RBI governor but there is a need to prepare for the imminent tapering by the Fed.
'Our future is in limbo. The government saved us with Operation Ganga; now, they must save our careers.'
Traders suspect The Reserve Bank of India (RBI) bought bonds and actively intervened in the rupee to support sentiment.
Strong dollar will impact financial system in India.
The tiny Central American nation of El Salvador has embarked on an interesting experiment by recognising bitcoin as legal tender. This is proving painful for many of its citizens but it's a useful "pilot" project for larger economies that are contemplating the peculiarities of this new asset class. El Salvador has a population of 6.5 million and GDP of about $27 billion.
Top gainers in the Sensex pack included Infosys, Bajaj Finance, Maruti, HUL, HCL Tech and Reliance Industries, while M&M, IndusInd Bank, ITC, PowerGrid and L&T were among the losers. The NSE Nifty settled 190.80 points, or 2.51 per cent, down at 7,801.05.
Most Asian currency and equity markets too suffered steep losses due to US rate hike fears.
The BSE Sensex rose on Wednesday to mark a record close as telecom firms such as Bharti Airtel surged on better-than-expected operating performance, while continued strong foreign flows also boosted sentiment.
'As we grew up in service and became seniors ourselves, our commanders advised us to graduate to whiskey since rum did not suit the stature and 'shaan' of a senior officer.' Nitin Sathe recalls his encounters with whiskey on World Whiskey Day.
He said cheap valuations, improving sentiment and the ongoing reform momentum coupled with increased transparency due to the internet are driving investors to the Dalal Street.
Analysts say that the rupee trajectory, going ahead, will be a function of flows.
Gains in realty, teck, IT, power, consumer durables, banking and oil & gas stocks helped both the key indices to score gains.
'One way to deal with these is to address these quickly and have rapid reaction teams in New Delhi, the state capitals and wherever possible.'
Led by the weak trend in the broader market, the market capitalisation of BSE-listed companies plunged Rs 1,65,437.91 crore to Rs 1,38,54,439.41 crore.
Forex dealers said a higher opening in the domestic equity market and dollar's weakness against other currencies overseas after the US Federal Reserve kept its easing policy unchanged also supported the rupee.
The new Guv needs to focus on structural inflation problems.
The results for the People's Choice Award for the Wildlife Photographer Of The Year are in.
The 30-share Sensex ended down 249 points or 0.94% at 26,304 levels.
RBI Governor cautioned against more volatility.
RBI is committed to bringing down retail inflation to eight per cent by January 2015 and six per cent by January 2016.
Many analysts over the past week have said the RBI has legroom to cut rates to the tune of 65 bps by June and some like Barclays and BofA have also spoken about the likelihood of an inter-meeting cut.
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