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.
The S&P and Dow dipped the most in a day since September 28.
The rupee is stable, and a number other of measures have been taken to bring stability in the capital market, the FM said.
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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.
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
The rupee closed at Rs 66.21 in its last trading session.
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.
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
RBI Governor Raghuram Rajan on February 2, left the key interest rate unchanged citing inflation.
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.
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.
Sensex witnessed the biggest single day gain since May 2009 in absolute terms.
The fuzziness of Trump's economic blueprint remains the biggest risk.
Index majors NTPC, BHEL, Reliance Reliance Energy, Reliance Communications and HDFC, DLF, TCS, SBI and Bajaj Auto have zoomed.
Tata Motors was the biggest gainer in the Sensex pack, rallying 2.94 per cent. It was followed by Vedanta, Bajaj Finance, Sun Pharma, ONGC, ICICI Bank, Bajaj Auto, Tata Steel, RIL, HDFC duo, L&T and SBI, rising up to 2.78 per cent.
Increased demand from oil importers for the American currency and a weak opening in the domestic stock market also put pressure on the rupee.
Investors will keenly watch US Fed meet starting Tuesday
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.
India Ratings principal economist Sunil Kumar Sinha said the Brexit is a mixed bag for the country.
At its last policy review, the central bank left policy repo rates on hold at 7.25 percent, tying future cuts to inflation outlook.
Given Indian corporates's high indebtedness, new credit will be used for servicing loans rather than building factories. This is setting us up for more companies on life support and more zombie banks, warns Rahul Jacob.
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.
A fall presents an opportunity to buy rate-sensitive stocks.
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.
The broader markets ended in line with the benchmark indices- BSE Midcap and Smallcap indices ended higher by 1.3% and 0.9% each.
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.
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.
'It was the Supreme Court's order (recommending changes in the SC/ST Act).' 'Isn't it wrong not to accept even the court's order?' 'Are you bigger than every institution?'
'My sense is that we should be braced for a correction.' 'It has already begun in the mid-caps for the past month, and will now spread to larger stocks as well.' 'Use the correction to upgrade the quality of your portfolio,' advises Akash Prakash.
Singh asserted that the people have made up their minds to vote out the government
The market is clinging to support above the 8,000 mark and hitting resistance above 8,150.
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.
On gold buying occasions such as Akshaya Tritiya, Chiraj Mehta points out, investors are often confronted with the question: Should I make just a token purchase, or should I buy more towards building my allocation in the yellow metal?
'The probability of another negative year in 2019 is low.'
RBI might not cut rate on June 2 but will surely cut soon.
Raghuram Rajan, whose current three-year tenure ends on September 4, has already said no to a second term.
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.
Experts advise investors to buy at lower levels in the next few months and sell at the higher end of their range in the second half, reports Rajesh Bhayani.
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