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The rupee slumped to a record low of 65.56 on Thursday and is headed for a sixth straight session of decline.
In dollar terms, the Indian markets managed to climb back to 2008 levels only in January this year. The subsequent fall in the rupee because of emerging market woes has once again pushed the markets below their 2008 level in dollar terms.
'Stick to the known quality names, avoid short term thinking and don't be in a hurry to book profits on your winners.'
Finance Minister Arun Jaitley said Sebi would develop new products in the commodity derivatives space apart from taking steps to deepen the corporate bond market.
Month-end dollar demand affected the rupee
The rupee had gained by 50 paise or 0.75 per cent in two weeks.
After witnessing a decline in the past two weeks, India's foreign exchange reserves rose by $587 million to reach $1,19,932 million mark, for the week ended 18.
'There is a misconception that gold is a dead asset in India.' 'Around 30 per cent of agriculture loans are collateralised by gold, Soumya Kanti Ghosh and Saket Hishikar, economists at the SBI, point out.
Huge gold imports have put pressure on the country's CAD, which in turn is affecting the value of rupee.
Sensex witnessed the biggest single day gain since May 2009 in absolute terms.
Due to tax associations with the fiscal-ending, April is a month of SIP renewal. So, the April numbers will be important and may perhaps, mark a change in retail attitude.
Gold funds have returned -5.2 per cent, while the Sensex is down 7 per cent in the past year.
A strengthening dollar, rising interest rates, tightening liquidity and a surge in oil prices - all are combining to create a toxic atmosphere for EM assets, says Akash Prakash.
A government can't just take away public money, and the RBI can't extinguish its liability. 'The RBI has to honour the value any time a person with legal and taxed money lays claim on the value.'
The Fed's decision on tapering its monthly $85 billion bond-buying programme is expected later on Wednesday.
The rupee's strength has had an overall negative effect on merchandise trade
'We don't know how much the Pay Commission outflow will be.'
