.jpg)
The rupee on Friday touched an all-time low of 62.03 to a dollar, spooking the equities market and dragging the Sensex down to 18,621.39 in the afternoon.
The derivatives expiry on Thursday is also expected to add to the volatility.
'The variables to watch include the monsoon, resolution of NBFC liquidity issues, GST collections, and NPA resolution.'
RBI will now increasingly shift focus to domestic parameters
The upcoming July derivatives expiry later in the week would also add some volatility to the market proceedings.
Experts say foreign investor sentiment was bolstered by the US Federal Reserve's decision to go slow with interest rate hikes and hopes of political stability.
'Our preference remains for the less-expensive industrial stocks, which are showing good earnings momentum.'
The unexpected upward revision of the country's sovereign rating by Fitch today will strengthen the battered rupee which would also stem the fund outflow from the domestic market, Standard Chartered said.
RBI is expected to slash rates by 150 basis points till end-December 2016.
Increased demand from oil importers for the American currency and a weak opening in the domestic stock market also put pressure on the rupee.
India must formulate a new growth path to become a top Asian economy.
China's domestic debt is a major concern.
On Wednesday, FIIs sold shares worth Rs 1,573 crore.
Both the government and RBI are expecting the CAD to be below $56 billion in the current fiscal compared to the record high of $88.2 billion, or 4.8 per cent of the GDP last fiscal.
Since end-May there has been volatility in the foreign exchange market.
Sensex in green in afternoon trade.
Group still far from coordinating monetary/forex policy
The government is committed to restrict the fiscal deficit at 3.4 per cent of GDP as envisaged in the Budget.
Gold imports had totalled 335.1 tonne in the April-June quarter, but have declined to 58.37 in the second quarter (up to September 25).
Indian economy was growing faster than the global average and all other major economies: FM
The meeting was about capex, and as the country is on the growth path, the companies were advised to increase capex, NLC India Chairman and Managing Director S K Acharya said after the meeting.
It will be difficult for the Indian equity to outperform overall growth to the extent bullish observers expect.
The Budget proposal will help startups with better incubation, talent and capital
Finance Minister P Chidambaram on said that financing current account deficit (CAD) year after year is a challenge and the only way to deal with the problem is by increasing exports.
We are entering a period of turbulence, but you can profit off that volatility.
Two years ago, India was touted as a rare bright spot in a gloomy global economy with GDP growth outpacing a slowing China.
Indian economy has good fundamentals and sizeable foreign reserves, RBI Governor Raghuram rajan said.
'The rupee falling from 69 to 72 was not normal or justified by the fundamentals.' 'And therefore I treat this as temporary.'
Anand Rathi recently carried out a research on the behaviour of the economy and CAD.
Market experts poohpooh fears of capital flight from India.
.jpg)
Preliminary balance of payments data published on Monday showed that the current account deficit fell to $5.2 billion in the July-September quarter of 2013-14, or 1.2 per cent of gross domestic product.
Market breadth is positive with 942 advances and 196 declines.
Sun Pharma was the biggest loser among Sensex components, plunging 3.94 per cent, followed by Tata Steel falling 3.12 per cent.
For the week, the Sensex recorded a fall of 371 points, or 1.10 per cent, and the NSE Nifty 130.75 points, or 1.25 per cent.
FIIs are looking at the long-term story and initiatives of Indian pharma companies to transform themselves into global entities.
'The government's principal aim should be to reduce the volume of cash transactions.' 'That would bring more of the Indian economy within the purview of taxation.' 'The current downturn in economic activity due to a lack of adequate cash is likely to be limited to a year,'
Brent crude prices fell to $57 a barrel on Monday from $62 a barrel.
The broader NSE Nifty moved between 10,705 and 10,785.55, before ending 25.15 points, or 0.23 per cent down at 10,716.55.
India's current account deficit which narrowed in the second quarter of this fiscal, however, is likely to widen during the second half of FY 2013-14 as seasonal demand bring in more imports, an HSBC report says.
The indices closed with losses for the week, with the Sensex declining 476.14 points, and the broader NSE Nifty falling 155.45 points during the period.
© 2026 Rediff.com - Advertise with us - Disclaimer - Privacy Policy - Sitemap - Feedback - About us - Terms of use - Grievances