The rupee on Tuesday recovered from its all-time intra day low of 77.79 to close higher by 7 paise on a stellar rally in domestic stock markets. After opening lower at 77.67, the local unit plunged further to its all-time intra-day low of 77.79 due to a spike in crude oil prices and disappointing macroeconomic data. However, a strong rally in domestic equities helped the rupee rebound and close at 77.48 (provisional), showing net gains of 7 paise over the last close of 77.55. The forex market was closed on Monday on account of Buddha Purnima.
The dollar's gains against other currencies overseas and a lower opening in the domestic equity market also put pressure on the local unit, forex dealers said.
His visit to India followed a few cancelled plans since he took office in July 2019 due to the coronavirus pandemic crisis, with the two leaders holding several virtual talks and eventually meeting in person on the sidelines of the COP26 climate summit in Glasgow last November.
Exactly a fortnight ahead of the Reserve Bank of India's (RBI's) next monetary policy review, a key market indicator of interest rates - the overnight indexed swap (OIS) - suggests that the central bank may tighten policy by 35 basis points and then refrain from further rate hikes. RBI Deputy Governor Michael Patra recently described the OIS as the primary instrument for hedging interest rate risk in India. The six-member Monetary Policy Committee (MPC) of the RBI will meet on December 5-7.
While RBI may cut rates by 25 basis points in the February policy review, global monetary policies hold the key to much of the financial assets flow in 2017
Asian Development Bank on Wednesday lowered India's economic growth forecast for FY2019 to 5.1 per cent on slowing job prospects, rural distress exacerbated by poor harvest and credit crunch. Growth in FY2020 is likely to recover thanks to this support, low oil prices, and a weakening rupee, but risks to the projections remain tilted to the downside, it said on India.
The markets will remain choppy ahead of RBI policy.
The visit, which is expected around April 22, is long overdue after Johnson was forced to cancel planned visits to India twice last year due to the COVID-19 pandemic.
Here is an explainer on the functioning of the seven-year-old body.
Pakistan's deputy Prime Minister and Foreign Minister Ishaq Dar, who is in China on a four-day visit, and Chinese Foreign Minister Wang Yi co-chaired the fifth round of the foreign minister-level China-Pakistan Strategic Dialogue.
The dollar-rupee rate could move in the opposite direction if dollar policy rates rise and the FPIs sell in December, says Devangshu Datta.
Banks, real-estate sectors lead gains.
India is not so keen to co-operate with the US on IPR related probe.
The rupee appreciated by three paise to close at one-week high of 60.81 against the US dollar in the previous session on sustained dollar selling by exporters and capital inflows.
'I found it unbelievable that L&T said 45,000 jobs were waiting to be filled because of unavailability of suitable skillsets.' 'So, when the Opposition sweepingly says there are no jobs, I'm sorry... I'm not saying it's raining jobs, but there are jobs. The (skill) gap has to be bridged.'
Out of 30 key export sectors, as many as 22 showed negative growth in September.
Dispute over IPR was a bone of contention in bilateral ties till a couple of months ago.
'At a time when the entire India-US relationship needs to be defined by President Trump and Prime Minister Modi, a fresh look at the liability issue has become urgent,' says Ambassador T P Sreenivasan, former Governor for India at the IAEA.
Forex dealers said besides increased dollar selling by exporters, strength in other currencies against the American currency overseas also supported the rupee but a lower opening of the domestic equity market capped the gains.
The overall market breadth in BSE remained positive with 1,545 stocks advancing and 1,221 stocks declining.
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The rupee has avoided the heavy losses suffered by some emerging Asian currencies such as the Philippine peso this year because of its efforts to narrow the current account deficit, and strong foreign investor inflows.
Modi sees export-led growth one of the best ways to create jobs.
Markets continue to trade on a strong note in the late morning deals on the back of positive global cues and buying visible in the banking and capital goods stocks ahead of the Reserve Bank of India's (RBI) policy review which is due on Tuesday.
Traders are now focussed on the upcoming November trade data, due sometime this week, for near-term direction, with consumer inflation data due out on Thursday, which will help set expectations ahead of the Reserve Bank of India's policy review on December 18.
Among other things, taking note of complaints against several Chinese e-commerce players such as Shein, Ali Express etc for sending shipments as 'gifts' to customers in India and avoiding duties, the government has now mandated that all e-commerce sites and apps must have a registered business entity. This will be the importer on record and subject to customs rules, report Subhayan Chakraborty, Neha Alawadhi and Karan Choudhury.
With EU, it is part of the FTA that we will need to negotiate.
Revising up inflation bands for the central bank will hurt the poor, former deputy governor of RBI Viral Acharya said on Wednesday, terming the current 4 per cent midpoint on price-rise as a "reasonable target".
Former Nepalese foreign minister Ramesh Nath Pandey observed that the current situation is not encouraging for India-Nepal ties, saying the "present leaders" created irritants in the relationship in the past.
BSE market breadth was neutral with 1,383 stocks on the advancing side and 1,361 stocks on the declining side.
Brokerage firm Nomura said inflation levels in India are close to post global financial crisis lows, and also retained its positive stance on Sensex.
'Das is friendly, but he finally does what he does. The quality of engagement is very good.'
The India government needs to work on policies that can enhance global trade.
The 30-share Sensex ended lower by 61 points at 29,122 mark and the 50-share Nifty slipped by 12 points to close at 8,797.
The Monopolies and Restrictive Trade Practices Commission (MRTPC) had sent a letter to about half a dozen banks last month, seeking details on how they had determined the interest rate increases on their housing loans.
Johnson was to spend a few days in India starting April 26 as part of a planned itinerary, which is expected to include finalising a UK-India Enhanced Trade Partnership.
India is an 'extraordinarily important' economy and an 'important partner' of Canada in a range of sectors including fighting climate change and creating economic growth, Canadian Prime Minister Justin Trudeau said on Sunday.
Being a pragmatist Modi is not likely to give preference to China over Japan. Both security and economic aspects are likely to shape Modi's decision in terms of engaging the two biggest economies of Asia, says Sana Hashmi.
The Indian position on the Russia-Ukraine war and the unconditional treaty between China and Russia appear to have caused some ripples in India-US relations and led to a reappraisal of India's usefulness to the US in the eventuality of a conflict with China, notes Ambassador T P Sreenivasan.
The S&P BSE Sensex ended 46 points lower at 24,824 and Nifty50 settled at 7,555, down by 8 points after hitting intra-day high of 7,600.45.
