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”
The Mint a financial newspaper from India reported that the Inflows from foreign institutional investors (FIIs), the main driver of Indian equities, topped $20 billion (around Rs.1.1 trillion today) in the first 11 months of the calendar year—the second highest since 1993, when India opened the doors to this class of investors. So India is attracting more FII than the FDI’s let’s try to go through some basic and try to find the difference in both of them,
Foreign direct investment is an investment of assets done by foreign origin company into the domestic equipments, organization, and company. (FDI)
An investor or investment fund that is from or registered in a country outside of the one in which it is currently investing. Institutional investors include hedge funds, insurance companies, pension funds and mutual funds. (FII)
Lets try to understand the differences Continue reading “(FDI) Foreign direct Investment & (FII) Foreign Institutional Investors : (Back to school)”
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?”