As the value of rupee vis-a-vis the dollar rises, the cost of travelling abroad comes down.
This election will be remembered for being the first election where the Election Commission failed to take action on gross violations involving the ruling party that repeatedly used religion, communal slurs, lies and undocumented allegations, observes Ramesh Menon.
The rupee had plummeted to over three-month low of 63.32.
The rupee strengthened by 14 paise to close at 66.41 against the US dollar on Wednesday.
In a dazzling resurgence, foreign investors have graced the Indian equity markets with an influx of nearly Rs 1.5 lakh crore in 2023, fuelled by optimism over the country's resilient economic fundamentals amid shadows of a gloomy global scenario. Experts believe that the positive trend may continue in 2024. This follows Indian equities witnessing the worst-ever net outflow of Rs 1.21 lakh crore by FPIs in 2022 on aggressive rate hikes by the central banks globally after net inflows for three consecutive years.
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While cost pressures could partly offset the expected gains, given the currency hedging by companies the gains will not accrue immediately.
The rupee had lost 15 paise to hit two-week closing low of 60.68 against the dollar in yesterday's trade on consistent demand for the US currency from importers and some banks on strong global cues.
Life insurance offers dual benefits: financial security to your family in case of the policyholder's death as well as helps you save tax, says Alok Patnia.
What should investors do when markets hit an all-time high, and we have seen five new all-time highs in 2023? Dwaipayan Bose has some answers.
The rupee fell 13 paise to end at 61.21 against the American currency in Wednesday's trade following fresh dollar demand from importers, amid uptick in retail inflation and slowing industrial production growth.
Global feeder funds provide geographical diversification from rupee assets.
The partially convertible rupee ended at 62.2825/2925 per dollar.
The rupee closed 2 paise lower at 60.13 on Wednesday as a sudden demand for the US currency emerged at fag-end of trade.
IT stocks attracted robust demand on Monday, rising by as much as over 2 per cent, on hopes that the rupee's weakness will boost dollar revenues of the software firms.
The cost of holding one-year forward dollars rose to 482.75 basis points from 472.75 bps on Tuesday.
RBI might not cut rate on June 2 but will surely cut soon.
Unseasonal rains watered down the performance of consumer durables companies as temperatures cooled, impacting the sales of refrigerators and air conditioners (ACs) in the 2023-24 (FY24) April-June quarter. Centrum says in its report on the sector that the trade channel indicates a 25-30 per cent year-on-year (YoY) decline in sales of refrigerators and ACs in April and May due to restricted buying. "While some green shoots in demand were visible in June, overall growth for the quarter is likely to remain at a negative 10-12 per cent," observes the brokerage.
'Gold prices thrive on volatility and more so when the stock markets trend downward.'
'Sweden removed the inheritance tax because many of the rich were fleeing. For example, the owner of IKEA had migrated out of Sweden'
India's mutual fund (MF) industry had barely any retail footprint when it completed 50 years in 2013. MFs had Rs 7 trillion in assets under management (AUM) in March 2013, of which around Rs 5 trillion was in institution-focused debt funds. By comparison, bank deposits in the country stood at Rs 67.5 trillion around the same time.
Wage hikes and rupee depreciation may affect the business.
Within three trading sessions in May, foreign portfolio investors (FPIs) have pumped in Rs 9,461 crore into Indian equities. This follows net inflows worth Rs 7,936 crore in March, and Rs 11,631 crore in April. The trend, analysts said, could continue going ahead as the US Federal Reserve may soon halt its interest rate hike cycle, which will strengthen foreign fund inflows into emerging markets, including India.
'The kind of tax which will be generated from the second pillar may far outweigh what we may be losing in the first pillar.'
RBI governor Raghuram Rajan, on Monday, said the current level of the rupee is "pretty reasonable" and any attempt to devalue it may lead to a surge in inflationary pressures and "offset any benefits"
rediffGURU Ulhas Joshi answers your mutual fund queries.
Over 85 per cent of SIP AUM, or Rs 5.8 trillion, is in equity schemes, compared to just Rs 6,100 crore in debt.
In recent sessions, shares have rallied on hopes Hindu nationalist opposition leader Narendra Modi, a more business-friendly candidate, is seen coming to power on promises of economic revival and jobs.
The steady inflows from systematic investment plans (SIPs) into mutual funds (MFs), coupled with outflows from debt schemes, has propelled the share of SIPs in the total assets being managed by the industry to a new high of 17.1 per cent in February. SIPs are used predominantly by retail investors. Nearly seven of every 10 SIP accounts are in equity-oriented active MF schemes.
Forex dealers said besides dollar's gains against other currencies, increased demand for the American unit from importers put pressure on the rupee, but a higher opening in the domestic equity market limited the losses.
'We expect the new government to look into the issue of penalties imposed on technology firms involved in UID related projects.'
Devangshu Datta predicts the good, the bad and the ugly of currency trends for the coming year.
'If such a practice were feasible, every state would seek additional funds, posing a significant risk to the overall health of the economy.'
In spite of Mukesh Ambani, Gautam Adani, the Poonawallas and many other Indians seeing a jump in their net worth in the pandemic-hit 2020, overall wealth of the country's super-rich dipped 4.4 per cent to $12.83 trillion in the year due to the rupee's fall, and so did their tally, says a report. The number of dollar millionaires in India fell from 7,64,000 in 2019 to 6,98,000 solely because of the rupee's fall, while their cumulative wealth stood at $12.833 trillion, down $594 billion or 4.4 per cent from the previous year, according to the report by Credit Suisse Research Institute. The country is home to just 1 per cent of the global rich, whose number rose by 5.2 million to 56.1 million in the COVID-hit year. However, the report expects the number of millionaires in India to soar 81.8 per cent to 1.3 million by 2025.
Insisting that Vijay Mallya was not given even "a rupee benefit" under the Modi government, Finance Minister Arun Jaitley on Thursday said that loans were reportedly given to the businessman during the previous United Progressive Alliance rule through intervention of the North Block, a reference to the finance ministry.
Congress leader Rahul Gandhi on Monday said his party would conduct a "caste census" if elected to power as only such an exercise would ensure the "participation of OBCs, Dalits, tribals and women".
From a longer term perspective an improvement in economic environment is necessary for a rise in inbound deals.
Since most Indian firms have kept their forex exposure unhedged, credit profile of companies in the highly sensitive sectors such as oil & gas, metal & mining, airlines could weaken substantially, says Anup Roy.
Gold funds have returned -5.2 per cent, while the Sensex is down 7 per cent in the past year.
