Foreign Capital Inflows

The rupee appreciated 8 paise to 81.60 against the US dollar in early trade on Tuesday as foreign capital inflows and a firm trend in the domestic equity market boosted investor sentiments. Besides, a weak American currency in the overseas market helped the local unit, forex dealers said. At the interbank foreign exchange, the domestic unit opened strong at 81.58 against the dollar, then inched lower to quote at 81.60, registering a rise of 8 paise over its previous close. In the previous session on Monday, the rupee rose 3 paise to end at 81.68 against the dollar. The dollar index, which gauges the greenback's strength against a basket of six currencies, slipped 0.38 per cent to 106.28. Brent crude futures, the global oil benchmark, surged 1.39 per cent to USD 84.35 per barrel. In the domestic equity market, the 30-share BSE Sensex was trading 164.06 points or 0.26 per cent higher at 62,668.86. Similarly, the broader NSE Nifty rose 59.10 points or 0.32 per cent to 18,621.85. Fo

India is already estimated to have spent $75.1 bn this year supporting the rupee in the spot and forward markets, while China has probably spent $39.6 bn

India's forex reserves declined to $553.1 bn in the week ended Sept. 2, their lowest since Oct. 2020 and down by $8 bn from the previous week, RBI data showed on Friday

If up to $50 billion is withdrawn from forex reserves to finance CAD, the country would still be able to meet nine month's imports. Any withdrawal beyond this could pose a problem

A number of foreign investment banks and research institutions pointed out heavier capital outflows from China after the start of Russia's invasion of Ukraine

March was the sixth straight month when foreign portfolio investors pulled out Rs 41,123 crore from the Indian equity segment, National Securities Depository data had revealed

Total investments in Indian real estate stood at USD 49.4 billion during the 2012-2021 period, of which 64 per cent came from foreign investors

IFSCA in talks with 10 foreign counterparts to help Indian fintech firms expand globally

What should be your investment strategy with the markets at all-time high?

The benchmark equity indices have rallied over 80% from March lows leaving many analysts concerned about stretched valuations

Excess liquidity and cheap rates could be causing some systemic problem for the future, experts have started to warn

Acharya warned that both conditions are prevalent in India. Given India's macro constraints, where the government is spending more relative to the Indian households' savings

The inflows in September "could be a sign of foreign capital returning" to India, said Duncan Tan, a strategist at DBS Bank

Bond and currency markets would increase policy difficulties

Climate change is where collective action is inevitable but is becoming increasingly difficult, the former RBI Governor said

We should liberalise debt flows so that a larger change in capital flows is obtained by a small exchange rate change