Global private equity major KKR has ranked India second among the emerging markets on external risks, citing the high fiscal and current account deficits.
If indeed we want the board to manage the RBI, probably the government should take a close look at the US Federal Reserve system which has a two-part structure - a central authority in Washington, DC, and a decentralised network of 12 Federal Reserve Banks located throughout the country, says Tamal Bandyopadhyay.
The US Federal Reserve on Wednesday night hiked interest rates by 0.25%.
.jpg)
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.
Brent crude prices fell to $57 a barrel on Monday from $62 a barrel.
RBI has, since January, cut its policy rate four times.
Indian equities are in a multi-year bull story with capex cycle recovery as the main driver.
'If an investor is ready to stay put for the next five years, one can consider investing in mid- and small-cap funds, but through SIPs.'
India's gross domestic product growth rate slipped to 7%.
Rajan also said it's a problem of collective action and not a problem of industrial nations or emerging markets
Investor wealth on Thursday soared by Rs 1 lakh crore, triggered by heavy buying in the stock market, with the BSE benchmark Sensex surging about 382 points to close at near six-week high levels.
As the economy teeters between bad and worse, one question looms: What's the best course of action? Here's what can be done. And what can't
RBI has reiterated its faith in the Indian economy but it has also put forth some key concerns that have the potential to derail the growth engine.
The rupee is stable, and a number other of measures have been taken to bring stability in the capital market, the FM said.
Interest rates still aren't low enough to stimulate the U.S. economy. Washington needs to engender more inflation so "real" rates turn substantially negative
.jpg)
According to the global financial services major, the primary concern for the RBI at the moment has to be anchoring elevated inflation expectations and stabilising the currency, which could face renewed pressures if the Fed begins QE tapering this week, as widely expected.
India's news broadcasters are a national shame that have polarised Indians, observes Vanita Kohli-Khandekar.
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.
The S&P and Dow dipped the most in a day since September 28.
Index majors NTPC, BHEL, Reliance Reliance Energy, Reliance Communications and HDFC, DLF, TCS, SBI and Bajaj Auto have zoomed.
The rupee is likely to strengthen to 60-61 level by this fiscal-end on expectations of improvement in current account deficit (CAD) and higher inflows from overseas investors.
Sensex witnessed the biggest single day gain since May 2009 in absolute terms.
The rupee closed at Rs 66.21 in its last trading session.
Increased demand from oil importers for the American currency and a weak opening in the domestic stock market also put pressure on the rupee.
RBI Governor Raghuram Rajan on February 2, left the key interest rate unchanged citing inflation.
The fuzziness of Trump's economic blueprint remains the biggest risk.
In the latest large opinion poll, the opposition Bharatiya Janata Party and its allies were forecast to win a narrow majority in the 543-seat lower house of parliament, compared with previous surveys predicting that they would fall short.
Investors will keenly watch US Fed meet starting Tuesday
At its last policy review, the central bank left policy repo rates on hold at 7.25 percent, tying future cuts to inflation outlook.
A fall presents an opportunity to buy rate-sensitive stocks.
The broader markets ended in line with the benchmark indices- BSE Midcap and Smallcap indices ended higher by 1.3% and 0.9% each.
India Ratings principal economist Sunil Kumar Sinha said the Brexit is a mixed bag for the country.
Experts believe volatility is here to stay for some time, at least till China stabilises and clarity regarding the US Fed's interest rate move emerges.
RBI will review the monetary policy again on September 29.
The BSE IT sector, however, failed to snap a three-day losing streak and closed around 0.14 per cent lower.
The Bad Boy Billionaires series has a lot in common: The three billionaires' hefty ambition, dangerous arrogance and untrammeled power, observes Dhruv Munjal.
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.
The previous bout of Fed withdrawal fears had threatened to spark a crisis of confidence in India -- sending the rupee to a record low of 68.85 in late August and leading to steep falls in bonds and stocks.
A massive outflows of foreign funds on the back of stricter participatory notes and renewed possibility of Fed lifting US interest rates largely impacted the domestic unit.
