The yellow metal is a safe bet in the long run.
Rise in crude oil price and rally in global equities aided the sentiment
Insufficient rainfall will have a negative impact on the economy.
In early trade on Monday, the rupee fell to 63.33 to a dollar, its weakest since September 18.
Investors still seem to have a disinflation bias to their thinking.
As the rupee falls to new lows, the author reviews India's external sector risk indicators.
The markets have been unable to sustain at higher levels as a rise in bond yields globally, especially in the US have dented sentiment. Surging commodity prices, especially crude oil that have now hit $70 a barrel (Brent) coupled with inflation woes and fear of sporadic lockdown across major economic hubs back home as Covid cases rise have chased the bulls away. In the short-term, analysts expect the markets to remain volatile as they react to news flow - both from overseas and developments back home. Investors, they say, need to keep a tab on how the US treasury yields move, which in turn will have a ripple effect on how big money moves across developed (DMs) and emerging markets (EMs), including India.
Traders said falling crude prices in the global market was a big boost for the economy as it lightens the country's import bill burden, eases inflation and current account deficit concerns.
Chances of a rate cut in April improve if core inflation continues to ease, growth falling below the projected 7.2% for FY19 and if the global trade slowdown exacerbates.
The rating outlook change is relevant now, as the US Federal Reserve is set to end its monthly bond-buying programme in October.
The Centre has indicated that it would consider giving direct cash subsidy to state-owned oil marketing companies this year, instead of bonds, to compensate them for selling cooking fuel at lower than market price.
She said that despite government scheme and initiatives ranging from roads to agriculture, housing, scholarships to electricity benefiting lives of people, a false narrative was being created by the opposition that the government was working for cronies.
The rupee had gained five paise to close at 63.25 against the dollar in on Monday's trade on fresh selling of the US currency by exporters amid bullish stocks.
The rupee's strength against its competitor could come to haunt exporters.
Strong currency and sagging oil prices are spooking policymakers.
In November they had raised $2.19 billion from abroad, according to the Reserve Bank data released on Friday.
Sensex witnessed the biggest single day gain since May 2009 in absolute terms.
Aviation companies were in focus with all the three airliners SpiceJet, InterGlobe Aviation and Jet Airways adding in the range of 2% to 3% on the BSE
'One can start accumulating economy driven stocks in the next few months with a two-three year view.'
India should remember that Pakistan-Saudi Arabia relations will remain special due, not least, to bonds of all Muslims with The Holy Land. They would also be strategic enough, irrespective of whether the ambassador is a military man or a career civilian appointee., notes Rana Banerji, who headed the Pakistan desk at the Research and Analysis Wing, India's external intelligence agency.
'Investors need to find out how the FMP's assets are distributed and ensure the investments are in high-quality names.'
Automobile company Tata Motors, metals and mining major Vedanta, oil marketing firm Bharat Petroleum Corporation (BPCL), private sector IndusInd Bank, and two-wheeler major Bajaj Auto have witnessed their market cap slip below the Rs 1-trillion mark this year.
The restraint on part of investors was chiefly because of RBI's minutes of its December policy meeting, which showed that some members were concerned about rising oil prices, its inflationary impact and possibility of fiscal slippage.
He also feels that central banks have injected too much liquidity, which is not sustainable and will end badly for investors.
Ongoing trade-war rhetoric between the US and China added some nervousness on the trading front coupled with extremely bullish dollar sentiment overseas.
'Most importantly, marking a departure from the past, the RBI has made it clear that it is not overtly worried about the level of the local currency,' notes Tamal Bandyopadhyay.
Nearly three-fourths of the debt money, as of April 30, 2019, was invested in securities with duration of less than three years.
We're an educated family, I said, let's not act like the mindless hordes who spread misinformation over WhatsApp, says Kishore Singh.
Economists warn of the impact that a Fed rate rise could have on emerging economies.
The government on Thursday decided to ask the 13th Finance Commission to map the road for achieving fiscal deficit targets by including off-budget subsidies like oil, food and fertiliser bonds estimated at over Rs 100,000 crore (Rs 1,000 billion) in the Budget.
Global investors are fast losing appetite for equities, as deflation seems more of a reality. With commodity prices collapsing, few safe havens are left for investors, with many of the BRICS(Brazil, Russia, India, China and South Africa) losing their charm.
Forex dealers said besides dollar's gains against euro and yen overseas, increased demand from oil importers for the American currency and a weak opening in the stock market also put pressure on the rupee.
Yes Bank was the biggest gainer in the Sensex pack, rallying 11.48 per cent amid reports that private equity firms have showed interest in buying a major stake in the private sector lender.
While government bond yields might rise, as there are expectations that the Reserve Bank of India might increase the repo rate in the second quarter monetary policy review due to high inflation.
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.
The 'Indian story' will be badly damaged if the Modi government is not re-elected, argues investment banker Christopher Wood.
The S&P BSE Sensex has gained 149 points to open at 25,802.
The BSE Sensex moved up 103 points to 35,319.35, while the wider NSE Nifty finished at 10,741.70, up 23.90 points.
Italian oil tanker Enrica Lexie, detained off Kerala coast since February 15 after its Marines shot dead two Indian fishermen, on Saturday sailed off from Kochi for Colombo after completion of all legal formalities, including execution of a bond for Rs 3 crore.
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