The rupee should be allowed to find its own level, says analyst Anil Bhansali.
The price of gold in India shot up 2.3 per cent in the past week.
The report said in the recent months policy makers as well as the private sector have made some efforts to improve productivity.
Gold prices on Friday rose by Rs 210 to hit another five-week high of Rs 28,300 per 10 grams in the national capital on sustained buying by stockists amid a firming global trend.
FM feels it will help to bring down imports.
The rupee had lost 21 paise to end at new 10-month low of 56.38 against the dollar on Thursday on fag-end spurt in dollar demand after RBI Governor D Subbarao painted a dim macroeconomic picture.
The large current account deficit and the growing vulnerability on the external front have largely contributed towards the secular decline and the current volatility of the rupee.
Lower crude prices and dip in gold demand will push the CAD down.
As per a data released on Monday by the government, gold and silver imports during April jumped by 138 per cent to $7.5 billion against $3.1 billion in the year-ago period.
The recent fall in commodity prices might not be sufficient to bring down the country's widening current account deficit
Rate-sensitive sectors gained amid hopes that the central bank would ease monetary policy more aggressively next month.
Unsustainable CAD, sticky inflation & impact on pace of rate cuts all worries for FY14.
The Reserve Bank of India (RBI) is likely to clamp down on gold coin sales by banks, amid rising bullion imports adding pressure to the current account deficit and weakening the rupee.
Says govt's focus is to re-assure foreign investors that India is wide open for business.
If you take a 15-year period, the tax rates have increased at a higher rate than inflation.
Exporters sold dollars amid RBI's concerns on current account deficit.
The Reserve Bank on Wednesday approved a Rs 2.11 lakh crore dividend payout to the central government for 2023-24, more than double the amount it paid for the previous 2022-23 financial year. The decision was taken at the 608th meeting of the Central Board of Directors of the Reserve Bank of India held under the chairmanship of Governor Shaktikanta Das.
Exports dropped 5.7 per cent to $28.6 billion from the same period a year earlier.
It will help to stop widening of Current Account Deficit.
Market breadth on the BSE was rather unhealthy with 1,436 stocks having declined against 973 advancing ones, on the BSE.
While the regulators -- Sebi and RBI -- are yet to issue guidelines, gold ETFs certainly look more promising.
The broad sense which prevails today is that India's macro-economic numbers are in good shape. But are they?
Gold is said to be the most-favored investment instrument in India.
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The interest on foreign currency non-resident accounts has been liberalised to attract more deposits.
Despite several constraints, the policy has tried to support growth through more liquidity infusion.
Bold reform measures to sustain high growth trajectory figure high.
In 2011, the rupee emerged as the most vulnerable Asian currency on the block. It depreciated by almost 19 per cent in 2011, while for the others depreciation was mostly in single digits. The Chinese Yuan actually appreciated in this period.
A K Bhattacharya wonders if Kisan Baburao Hazare get his timing wrong, or is Finance Minister Pranab Mukherjee trying hard to get his timing right?
The challenge for the RBI in 2024 is likely to be less about containing elevated inflation and more about curbing excessive financial market exuberance and a 'problem of plenty', notes Sajjid Chinoy, Chief India Economist JP Morgan.
Any attempt to push growth beyond 9.5 per cent in the 12th Plan period that begins next year may lead to higher inflationary pressures and current account deficit woes, says Chairman of the Economic Advisory Council to the Prime Minister, C Rangarajan.
He stressed that reform for him was just a way station on the long journey to the destination and the destination is the transformation of India.
RBI Deputy Governor Shyamala Gopinath said India has been able to absorb capital inflows because it has a current account deficit.
The domestic equity market, which is on a record-breaking spree, will focus on macroeconomic data announcements, movement in global stocks and the US Fed minutes to get further direction, analysts said. Trading activity of Foreign Institutional Investors (FIIs) will also innfluence investors.From the domestic macroeconomic front, Purchasing Managers' Index (PMI) data for the manufacturing sector will be released on Monday, and that o,f the services sector on Wednesday. Investors, this week, will keenly watch major global market events, icluding the outcome of the Federal Open Market Committee (FOMC) minutes, scheduled to be out on Wednesday.
Finance Minister Pranab Mukherjeet presenting the 2012 Budget said the GDP to grow by 6.9 per cent in 2011-12.
Inflation stood at at a high of 8.23 per cent in January. After touching a high of 18.23 per cent in December, food inflation came down to 11.49 per cent in mid-February.
Endorsing the Economic Survey's emphasis on the farm and the infrastructure sectors for achieving higher economic growth, Finance Minister Pranab Mukherjee said inflation and widening current account deficit remain major areas of concern.
The continuing debt turmoil in the euro zone area could have an adverse fallout on the Indian economy, hurting its capital flows as well as exports, the Economic Survey said on Friday. Further, it noted that rising international oil prices could aggravate the current account deficit, which is already at high levels.
Sensex and Nifty lost about 3.0 per cent to end the day at nearly 2-week lows.
S&P Global Ratings on Friday said it will watch the fiscal numbers for the next 1-2 years, besides pro-growth policies of the new government, before deciding on India's sovereign rating upgrade. S&P, which earlier this week upgraded India's outlook to positive while retaining the sovereign rating at BBB-, expects the new government to continue with pro-growth policies, infrastructure investment and commitment to fiscal consolidation.
India's banking system is expected to remain unscathed from the troubles in Credit Suisse as it has a very small presence in the country, experts said. Although Credit Suisse is more relevant to India's financial system than Silicon Valley Bank (SVB), it has very limited operations, according to a report by Jefferies India. The Switzerland-based bank, the report said, "has less than Rs 20,000 crore in assets (12th among foreign banks), presence in the derivatives market and funded 60 per cent of assets from borrowings, of which 96 per cent are up to two months.
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