Well I am back. Before featuring to the outside world lets focus on the last two weeks that were vibrant for the India. I hardly watch news on television but during these days the only source of information was television and the Indian media.
Sharing some of my thoughts – The Media left no stone unturned to ensure that the TRP rights will be on peak showcasing the BJP (India’s biggest opposition political party) internal disputes and the naming ceremony of Mr.Narendra Modi as Prime Minister Candidate.
It’s well known Mr Modi is a famous and controversial figure in this country. To be honest the media showcased the story as if he has become the PM of this country. Continue reading “Modi – India – Rupee – Raghuram Rajan”
The Indian Rupee has depreciated significantly against the US Dollar and reached record lows last week. Why is this happening and what does this signify? This post talks about the dynamics of the rupee and reviews probable reasons for this depreciation.
Exchange rate for any currency pair is determined by the buying and selling pressure of the respective currency with respect to the other. If the market does not think positively about a currency then there is a downward pressure on that currency. The movement of rupee from 1991, when India changed from a fixed rate system to a managed floating rate system has been a roller coaster ride. Continue reading “Rupee @60 The Rollercoaster ride”
The Rupee’s as you know has its historic low – 58.84. Exporters see this as an opportunity to make India the world export powerhouse by de-bottle-necking manufacturing infrastructure. Were as the weaker currency makes imports costlier, especially of foreign oil on which India heavily relies, and will stoke already high consumer inflation.
New Delhi is attempting to ease corporate concerns, saying it will take measures to curb the widening current account deficit as imports outpace exports.
Let’s try to explore the reason behind the free fall:
1) Dollar Trading at 3 Year High : USD is trading at 3 year high at 84.3, US stock market are at life time high, Strength in USD indicating recovery in US economy. Housing market is recovering. Job situation is improving which makes market participants believe the US fed will be tapping the QE infinity. Continue reading “The Rupee Free fall and the reasons”
A day back, Where Oil companies announced a small hike of 50paisa liter on Diesel prices, Our Indian government, tried to balance it down by raising the supply of subsidized cooking gas to 9 cylinders/year on the older 6 cylinders/year. This could be a push to boost the Indian economy with business-friendly steps “BUT, is it really so?” This question came to me with the release of a statement made by our oil Minister M Veerappa Moily. He said “We have given some liberty to oil marketing companies to raise diesel prices in small dozes. They are authorized to make small price correction from time to time.” Continue reading “OH GOSH!! A Hike Again with “But””
Finance Minister Palaniappan Chidambaram urged officials on Tuesday not to hound the country’s taxpayers. An investor backlash forced the government in May to defer until 2013 implementation of a set of general anti-avoidance rules (GAAR) that were introduced in the annual budget in February.
Finance ministry urged pension and insurance funds Continue reading “India: Is Bull Run on the Bourses Over?”