THE WEEKLY FINANCIAL NEWS
India’s inflation could accelerate in the current fiscal year due to the Indian rupee's sharp depreciation. The Indian rupee touched record low of 65.52/dollar on Thursday and is down 16 per cent so far this year despite efforts by policymakers to prop it up.
The Bharatiya Mahila Bank proposes to complete the first six branches at Mumbai, Delhi, Kolkata, Chennai, Indore and Guwahati by October 15 and take the total to 25 by March 31, 2014.
Sebi has decided to tighten norms for tackling fraudulent and unfair trade practices so as to hold individuals as well as market entities equally guilty for manipulations by removing a regulatory lacunae.
Foreign investors have pulled out almost Rs 6,000 crore (USD 962 million) from the Indian debt market in a fortnight amid lack of clarity over tax norms for returns on such investments and weakness in the rupee.
According to him, the implications are that BRICS nations need to strengthen and consolidate their partnerships so that they can establish a new growth trajectory in all of the countries that will be mutually beneficial.
J P Morgan has downgraded Indian shares to "neutral" from "overweight", citing strain in balance of payments, while upgrading China shares to "neutral" from "underweight".
The brokerage adds it is late in downgrading India, but if the rupee continues to slide it would continue to underperform.
The government notified the decisions approved by the Cabinet earlier this month relating to FDI policy for multi-brand retail, revision of FDI caps and routes across different sectors and definition of ‘control’ for calculating total foreign investment (both direct and indirect) in Indian companies.
India and Indonesia could see their credit ratings lowered if their governments fail to halt the current slump in investor confidence towards the countries, Fitch ratings said on Thursday.
The rupee is likely to strengthen to 60-61 level by this fiscal-end on expectations of improvement in the current account deficit (CAD) and higher inflows from overseas investors, according to analysts at Crisil.
Early this week, the RBI announced to undertake OMO after the 10-year government bond rose to a five-year high at 9.47 per cent as the rupee breached the 64 mark against the dollar. The step was aimed at managing liquidity conditions to ensure adequate credit flow to the productive sectors of the economy.
By Arun Shourie, Former disinvestment minister
A SNEAK PEAK INTO THE WORLD OF FINANCE
Let us see what all measures are taken by the government and RBI to curb gold import – one of the major reasons to drive rupee down. Click on picture below for slideshow to begin