In the first part of a series on how foreign portfolio investment is driving the Sensex, Janaki Krishnan and Rakesh P Sharma examine what it is that is drawing these funds to the Indian equity market
India imports 1.2 billion barrels of oil, and oil prices are falling, falling...
The proposal to increase public float, hike income tax surcharge, move to tax share buybacks and lack of stimulus to shore up economic growth has hurt investor sentiment.
In the second part of a three-part series on how foreign portfolio investment is driving the Sensex, Janaki Krishnan and Rakesh P Sharma look at the FIIs' impact on the markets
While FIIs have pumped in nearly Rs 17,000 crore, MFs have been net buyers to the tune of Rs 9,000 crore.
The rupee surged to its highest level in five weeks to end at 65.58 by gaining 38 paise against the US currency.
Fund houses have been barred from being net sellers or holding net short positions at the scheme level in commodities.
According to the committee, single overseas investments of more than 10 per cent in a company should be considered as Foreign Direct Investment while those less than 10 per cent should be classified as foreign portfolio investment.
FPIs are currently capped at 5 per cent of the total outstanding government dated securities, and own 4.5 per cent
Foreign investment capped at 49 per cent.
Overall, net investment by foreign investors stood at Rs 2.58 lakh crore in 2014.
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The new Insurance Bill may be implemented in 2015.
Record equity divestment by the Reliance Group in its telecom and retail businesses garnering around $23 billion revved up the deal street in 2020, which otherwise would have gone down as one of the dullest on record, and dealmakers are seeing sunnier days in 2021 given the large scope for consolidation in a slew of sectors ravaged by the pandemic. With Jio Platforms alone garnering over $16 billion (Rs 1,18,318 crore) by selling 25.24 per cent stake and Reliance Retail notching up $6.4 billion (Rs 47,265 crore) by divesting around 9 per cent shareholding, the deal street signed off with $85 billion in the deal kitty across 1,270 transactions. This is higher by about 10 per cent over 2019. What is significant is that over a third of the total deal value came from Reliance transactions, say investment bankers.
The government is also working on Euroclearing, the world's biggest bond settlement system, for Indian debt securities.
Torrent Pharmaceuticals' Rs 3,000 crore proposal for increasing FII investment limit to 35 per cent was the biggest in terms of value
'If credit is not available, people will postpone buying. That's what has happened.'
The investment limit for foreign entities in Indian stock exchanges will be enhanced from 5 per cent to 15 per cent on par with domestic institutions.
Swiss brokerage UBS joins European banking peer HSBC in shutting down its offshore derivative business
If net forex outflows turn out to be relatively high in the next few years, the rupee could depreciate beyond Rs 80 to a dollar by 2022. The causal reasons could, for example, include unmet expectations of FPI and FDI investors about the performance of the Indian economy, sharp rise in prices of imported oil and decrease in FX remittances. The RBI has to ask itself whether guaranteeing future rupee-dollar exchange rates on FX forward contracts is a reasonable way to use its risk-bearing capacity, says Jaimini Bhagwati.
So far, India has attracted over $20 billion in the debt segment, thanks to the rate differential.
A Parliamentary Committee on Wednesday recommended a composite foreign investment cap of 49 per cent in the insurance sector and supported a government Bill to amend the Act.
The RBI is not statutorily independent from the government but has long enjoyed wide latitude
Housing sector to benefit from Budget.
'The Indian market has all the factors at the moment: Over-valuation, over-confidence, reliance on some source of massive fund flows and massive scams.' 'The trigger for a collapse could also have arrived.' warns Devangshu Datta.
The central government's deposits with the RBI had fallen to just Rs 100 crore as of June 8.
Depreciating the rupee against the dollar to boost economic growth has fiscal constraints and monetary limitations
There is as yet no clarity on how the process of consulting with the RBI Governor, initiated under Section 7 of the RBI Act, would unfold in the coming days. The government is keen that its suggestions made in the public interest should be heeded by the central bank, says A K Bhattacharya.
Scanty rain would have put extra pressure on food prices.
If you looked back at 2018 and had to give it a name, the Year of Limitations might be the most accurate.
The government will have to get projects moving.
We are much better placed than in 2013 with our overall fundamentals much stronger - higher foreign exchange reserves, a more favourable growth-inflation mix and an institutional framework for targeting inflation, says B Prasanna.
The measures to reduce the current account deficit should have focused far more on narrowing the trade imbalance, principally through export facilitation and linked FDI, says Nitin Desai.
Sebi's new FPI regulation has helped attract new capital pool, up registrations.
The rupee closed at Rs 66.21 in its last trading session.
'At this point, it does not appear to be a Lehman Brothers kind of crisis, which had a domino effect on the financial system.'
Retail inflation rose 4.38 per cent year-on-year in November, the slowest pace in data going back to January 2012.
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