A rising rupee is a tailwind for dollar investors.
After multiple weeks of decline, India's forex reserves increased by $1.15 billion to $585.89 billion during the week ended October 13, according to the RBI data. In the previous reporting week, the overall reserves had dropped by $2.17 billion to $584.74 billion. In October 2021, the country's forex kitty reached an all-time high of $645 billion.
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The country has slipped two positions to sixth to tie with Germany, the survey by research firm Ipsos said.
The rupee's sharp depreciation has been the most important issue in the current debate on the state of the economy.
Top gainers in the Sensex pack on Friday included IndusInd Bank, Bajaj Finance, M&M, SBI, ICICI Bank and Vedanta, rising up to 1.90 per cent.
Oil Minister M Veerappa Moily has suggested pricking the ballooning oil bill with everything from a street theatre campaign encouraging lower fuel use, to shutting fuel stations, to increasing imports from Iran.
The country's forex reserves dropped by a further $2.166 billion to $584.74 billion for the week ended October 6, the RBI said on Friday. India's forex kitty had gone down by $3.79 billion to $586.91 billion in the previous week. It can be noted that in October 2021, the country's forex kitty had reached an all-time high of $645 billion.
Prabhat Awasthi of Brics Securities also says that they have been positive on banks and that there is still value in public sector banks.
India's real gross GDP grew by 7.4 per cent year-on-year in the second quarter of 2004 and the rupee depreciated by less than 1 per cent in the first half of the same, the US treasury department has said in a report.
The rupee had lost 13 paise to close at 55.66 on Tuesday because of fag-end dollar demand from importers.
A rebound in oil prices, FII outflows and concerns over current account deficit weighed on the domestic currency, pushing it to fresh life-time lows.
However, if the rupee depreciates much, the economy in dollar terms would be that much smaller.
India's forex reserves dropped further by $3.79 billion to $586.91 billion for the week ended September 29, the Reserve Bank said on Friday. In the previous reporting week, the overall reserves had declined by $2.33 billion to $590.70 billion as of September 22. It can be noted that in October 2021, the country's forex kitty had reached an all-time high of $645 billion.
India's forex reserves dropped by $4.992 billion to $593.904 billion for the week ended September 8, the Reserve Bank of India said on Friday. In the previous reporting week, the kitty had jumped $4.04 billion to $598.9 billion. The country's forex kitty had reached an all-time high of $645 billion in October 2021.
Sharma was addressing the members of the Board of Trade, a body comprising captains of Indian industry.
India's forex reserves jumped by $4.039 billion to $598.89 billion for the week ended September 1, the Reserve Bank said on Friday. In the previous reporting week, the overall reserves had dropped by $30 million to $594.86 billion. It can be noted that in October 2021, the country's forex kitty had reached an all-time high of $645 billion.
India Inc is unfazed by the sharp fall of the rupee against the greenback as most big firms have already hedged their foreign exchange exposures.
After opening on a weak note, the 30-share BSE index settled 226.79 points, or 0.55 per cent, higher at 41,613.19 -- hitting an intra-day high of 41,697.03 and a low of 41,275.60. Likewise, the broader NSE Nifty closed 67.90 points, or 0.56 per cent, up at 12,248.25.
Prime Minister's key economic advisor C Rangarajan on Friday lowered the growth forecast for the current fiscal to 5.3 per cent from 6.4 per cent projected earlier and listed out host of measures including further liberalisation of foreign direct investment norms to improve economic condition.
May touch 64/$ due to foreign flows slowing down
The rupee will largely remain stable but with a mild depreciating bias in the next one year
'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.
India's forex reserves dropped by $30 million to $594.858 billion for the week ended August 25, the Reserve Bank said on Friday. In the previous reporting week, the overall reserves had dropped by $7.27 billion to $594.89 billion. It can be noted that in October 2021, the country's forex kitty had reached an all-time high of $645 billion.
The steep fall of the Rupee is not just making things scary for the Indian economy and economists.
Delhi-NCR and Mumbai are still the most preferred destinations for NRIs to buy property, say property brokers.
Weighed down by a weak rupee, the Reserve Bank on Tuesday chose to keep all key interest rates unchanged and asked the government to take urgent steps to reign in the high current account deficit.
India's forex reserves dropped by $7.27 billion to $594.89 billion for the week ended August 18, the Reserve Bank said on Friday. In the previous reporting week, the overall reserves had risen by $708 million to $602.16 billion. The country's forex kitty had reached an all-time high of $645 billion in October 2021.
Finance Minister P Chidambaram on Friday maintained that the rupee was "still strong," despite yielding ground to the dollar, and noted that the Indian currency had gained against other major currencies like euro, pound and yen.
The report, however, said a sustained weakness in USD against the emerging market forex remains a key risk to this view.
The rupee, which has depreciated about 23 per cent since May, has increased the loss ratios for the travel insurance segment.
Bajaj Finance was the top laggard in the Sensex pack, tumbling over 4 per cent, followed by Asian Paints, Bajaj Finserv, HCL Tech, Maruti and Infosys. On the other hand, IndusInd Bank, SBI, HUL, Tata Steel and ITC were among the gainers.
Wage hikes and rupee depreciation may affect the business.
RBI steps up interventions to prevent rupee gains.
The ballooning of crude prices has significantly increased the country's oil import bill and it can also lead to a worsening of the current account deficit and fiscal deficit for the domestic economy.
At the Interbank Foreign Exchange market, rupee opened weak at 55.57 from last Friday's close of 55.50.
IT services firms' revenue growth in the fourth quarter will be affected by macro-driven headwinds, lower working-days, and the fact of the three-month period being low season. Analysts are expecting FY24 growth to be muted. Revenue growth will decline 600-700 basis points to 10-12 per cent for FY24, said a CRISIL Ratings report. The 10-12 per cent growth rate is a fall from the 18-20 per cent expected in FY23 and around 19 per cent growth in FY22, the highest in eight years, said the CRISIL Ratings report.
That resulted in a 50-basis point improvement in operating profit margins on a sequential basis.
The Indian pharma industry is estimated to grow at 9-11 per cent in 2021-22 and in the next few quarters, it will be driven by domestic and emerging markets, according to ratings agency ICRA. In a sample of 21 Indian pharmaceutical companies, ICRA said revenue growth was moderate at 6.4 per cent in the second quarter of FY22, down from 16 per cent in the first quarter of 2021-22. The normalisation of the base and pricing pressures in the US market were the major reasons for slowing growth momentum in Q2 FY22, even as growth under domestic and emerging markets remained healthy, ICRA said in a statement.
Indian economy is expected to improve marginally in the current financial year with its GDP at market price projected to expand by 3.4 per cent from 3.3 per cent in the previous fiscal, think tank OECD said.
Investors prefer exits with lower valuation to staying invested for a longer term
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