Dealers said dollar slipped against the euro and yen after President Barack Obama was re-elected in a knife-edge US presidential election.
The US FOMC concludes its two-day meeting today while the Bank of Japan will start its two-day meeting today.
A delay in US Federal Reserve's quantitative easing tapering, coupled with better-than-expected September quarter earnings, ensured FIIs kept foreign money flowing into Indian equities.
The RBI has been tightening key benchmark rates since November last year as the country started recovering from the impact of the global economic slowdown.
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The Reserve Bank of India late on Wednesday unveiled rules to restrict how much its citizens and companies can invest abroad and announced additional curbs on gold imports.
They have put in $14 billion so far in 2014 but this could get slower if the US Fed raises rates; however, there are expectations on compensatory flows.
Sliding for the fourth straight day, the BSE Sensex shed 152 points in choppy trade on Wednesday amid mixed global cues ahead of the US Federal Reserve's policy decision.
Many believe that the surge in the markets defy economic reality and is being fuelled by aggressive monetary easing by central banks across the world.
Weakness in the greenback overseas against the backdrop of sluggish US macro data outcome helped the home currency move higher
Market breadth turned negative with 1,779 declines over 884 advances on the BSE
It has been a slow 2022 thus far for the primary markets. In the last 8 months, only 16 companies have raised Rs 40,311 crore via the initial public offer (IPO) route, data from PRIME Database suggests. In comparison, 63 companies had raised a cumulative Rs 1.18 trillion via the IPO route in 2021. A large part of the funds raised in 2022 were on account of the two IPOs - Life Insurance Corporation of India (LIC) and logistics firm Delhivery - that raised a total of over Rs 26,000 crore between themselves.
Last year this time, India was grappling with an imminent sovereign downgrade, with an uncontrolled fiscal deficit, policy paralysis of the highest order with no economic reforms for eight long years and a weakening rupee.
Sensex under pressure as Yellen signals rate hike; banking stock slip.
The states have outstanding liabilities of a whopping Rs 59,89,360 crore as on March 31, 2021, and the new sources of risk have emerged in the form of rising expenditure on non-merit freebies, the Supreme Court was told on Thursday by a PIL petitioner opposing irrational handouts.
The increasing involvement of Big Tech in the financial system could give rise to concentration risk and there are potential spillovers, which call for closer attention, Reserve Bank of India (RBI) Governor Shaktikanta Das said on Tuesday. "...enormous amounts of consumer data is being generated and leveraged upon by a few entities (the so-called Big Tech) by virtue of their huge customer base. "Such developments raise concerns on concentration risk and potential spillovers as their level of engagement with the financial system strengthens in the years to come," Das said at the Global Fintech Fest 2022.
'When the gold price rises rapidly, India's physical gold market remains on standby.'
Twelve of the 21 economists polled doubted whether the government could roll out the tax before the next fiscal year begins in April.
'Policy was more in line with the expectations.'
RBI seen cutting repo rate 25 bps on Sept 29, says a poll
Waves of foreign portfolio investments worth over Rs 51,000 crore splashed into the Indian market in 2021 as overseas investors turned net buyers of domestic securities for the third straight year while excess global liquidity and other factors steered the ebb and flow of their investing ways. With the global financial system still flush with liquidity, emerging market assets, especially equities, might well remain the preferred investment avenue for many more months to come, experts opined. As the equities sizzled during most of 2021, that also saw economy slowly coming back into the recovery path, Foreign Portfolio Investors (FPIs) turned net buyers but their investment is much less compared to net inflows of Rs 1.03 lakh crore in 2020.
The RBI has made serious attempts to improve fiscal deficit.
The upcoming general elections will be the focus and the economy and market performance will pivot around that event. The general consensus is that the India stock market should be up around 10 per cent by the end of the year.
'New record for the Nifty50 is only a question of when.'
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Dealers cited some dollar selling by state-run banks in the session, which some said may be on behalf of the central bank.
Shares of L&T Technology Services, an arm of engineering giant Larsen and Toubro, made a decent debut on the bourses
Most say a rate cut could come in RBI's June policy.
Skewed pay packets that encouraged imprudent risk-taking approach was one of the main causes for the financial crisis of 2008-09.
The RBI is scheduled to announce the annual credit policy for 2011-12 on May 3. Industry representatives are expected to press the RBI to lower interest rates so that credit becomes cheaper for them in the customary pre-policy meeting.
The buyout will cost LIC about Rs 100 billion, based on the Rs 248 billion market capitalisation of IDBI Bank as on Friday, and assuming it acquires a 40 per cent equity stake from the government.
There is not much bank employees can do, but some words of encouragement from the management would have helped. Stretched working hours and the tense atmosphere is taking a toll on their health.
At 3.5 per cent per annum, interest on savings accounts is the only regulated rate in the banking system currently and a highly contentious one given its impact on the common man.
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.
Industry on Tuesday hailed Reserve Bank of India's softening of interest rates in the Credit Policy 2003-04 and \n\nhoped it would lead to further cuts in lending rates of banks giving enough incentives to spur industrial production.
Since the burden of 'reserve' tax has fallen primarily on SMEs as they depend on bank finance, a further hike in its Cash Reserve Ratio will definitely hit the SMEs and small savers.
The rupee ended marginally higher by two paise at 62.24 against the dollar on Wednesday.
The Indian unit opened higher at 66.10 per dollar as against overnight level of 66.30 at the Interbank Foreign Exchange market and firmed up further to 66.04 on initial dollar selling.
'The idea is to invest where there is opportunity.'
Economic recovery in US, euro zone help; new orders sub-index at 52.4
The Federation of Indian Export Organisations said that banks are charging as high as 9.75-10.50 per cent interest from exporters.
Kotak Bank was the top loser in the Sensex pack, falling around 3 per cent, followed by Axis Bank, Sun Pharma, HDFC Bank, Bajaj Finance and Asian Paints. On the other hand, ONGC, PowerGrid and IndusInd Bank were the gainers.
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