Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Monday as they offloaded shares worth Rs 1,901.10 crore, according to exchange data.
Published Date – 12:00 PM, Tue – 22 August 23
Mumbai: The rupee recovered from its all-time low levels and appreciated by 7 paise to 83.06 against the US dollar in early trade on Tuesday, as the American currency retreated from its elevated levels.
Forex traders said the rupee is trading in a narrow range as selling pressure by foreign investors dented sentiments, while the weak tone in US dollar and positive domestic markets cushioned the downside.
At the interbank foreign exchange, the domestic unit opened at 83.07, then touched a high of 83.06 against the American currency, registering a rise of 7 paise over its last close.
On Monday, the rupee depreciated by 3 paise and settled for the day at an all-time low of 83.13 against the US dollar.
“Rupee in the last one week has witnessed quite a bit of action but in the last couple of sessions it is consolidating in a narrow range and volatility has been low,” said Gaurang Somaiya forex and bullion analyst, Motilal Oswal Financial services.
Somaiya further added that the US dollar too is retracing from higher levels after witnessing its longest winning streak in the last 15 months as it closed for the straight six weeks following safe haven buying on the back of uncertainty in China and better-than-expected economic numbers from the US.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.12 per cent to 103.17.
Brent crude futures, the global oil benchmark, fell 0.17 per cent to USD 84.32 per barrel.
In the domestic equity market, the 30-share BSE Sensex was trading 127.81 points or 0.20 per cent higher at 65,343.90. The broader NSE Nifty advanced 41.90 points or 0.22 per cent to 19,435.50.
Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Monday as they offloaded shares worth Rs 1,901.10 crore, according to exchange data.
The review highlighted the government’s proactive steps to curb food inflation, anticipating relief as fresh stock arrives to alleviate price pressures.
Published Date – 12:50 PM, Tue – 22 August 23
New Delhi: Although domestic consumption and investment demand are expected to continue driving growth, global uncertainty and domestic disruptions may keep inflationary pressures elevated for the coming months, warranting greater vigilance by the Centre and the RBI, says the monthly economic review released by the Finance Ministry on Tuesday.
The review noted that the government has already taken pre-emptive measures to restrain food inflation which, along with the arrival of fresh stock, is likely to subside price pressure in the market soon. At the same time however, it added that the external sector requires monitoring for further strengthening the prospects in the face of active pursuit of industrial policies globally.
“Services exports continue to do well and are likely to continue doing so as the preference for remote working remains unabated, typically manifested in the proliferation of global Clcapability centres,” the review said.
But the same time, from a medium- term perspective, it is important to monitor the impact of new technologies, such as Artificial Intelligence, on the external demand for Indian services exports and the consequent impact on employment, the review emphasised.
The review further said that there are downside risks to global stock markets on account of rising bond yields and anticipation of further monetary tightening do affect stock markets in emerging economies.
“Maintenance of macroeconomic stability may be returning as an important policy objective after about a year of relative abatement of macroeconomic headwinds,” it observed.
Gold price on Tuesday increased Rs 131 to Rs 58,621 per 10 grams in futures trade as speculators created fresh positions on firm spot demand.
Published Date – 02:28 PM, Tue – 22 August 23
New Delhi: Gold price on Tuesday increased Rs 131 to Rs 58,621 per 10 grams in futures trade as speculators created fresh positions on firm spot demand.
On the Multi Commodity Exchange, gold contracts for October delivery traded higher by Rs 131 or 0.22 per cent at Rs 58,621 per 10 grams in a business turnover of 12,958 lots.
Fresh positions built up by participants led to the rise in gold prices, analysts said.
Globally, gold was trading 0.35 per cent higher at USD 1,928.80 per ounce in New York.
Finance ministry on Tuesday said price pressure on food items is expected to be transitory, with tomato prices seeing a decline
Published Date – 06:50 PM, Tue – 22 August 23
ANI File Photo
New Delhi: The finance ministry on Tuesday said price pressure on food items is expected to be transitory, with tomato prices seeing a decline, but the government and RBI need to step up vigil to deal with elevated inflationary pressure.
Enhanced provision for capital expenditure by the government in the current fiscal is now leading to crowding in of private investment, and domestic consumption and investment demand would continue to drive growth going forward, said the ministry’s Monthly Economic Review for July.
The consumer price index based retail inflation spiked to a 15-month high of 7.44 per cent in July 2023, with specific food commodities mainly driving the increase. Core inflation, however, stayed at a 39-month low of 4.9 per cent.
“The government has already taken preemptive measures to restrain food inflation which, along with the arrival of fresh stock, is likely to subside price pressure in the market soon… The price pressure in food items is expected to be transitory,” the report said, adding, global uncertainty and domestic disruptions may keep inflationary pressures elevated for the coming months, warranting greater vigilance by the government and the RBI.
Though food inflation in July is perhaps the third highest since the new CPI series began in 2014, only 48 per cent of food items have inflation of above 6 per cent, and this includes 14 food items with inflation in double digits, it said.
Items like tomato, green chilli, ginger and garlic witnessed inflation of more than 50 per cent. Hence, the abnormal increase in prices of certain specific items led to high food inflation in July 2023.
“Tomato prices are likely to decline with the arrival of fresh stocks by the end of August or early September. Further, enhanced imports of tur dal are expected to moderate pulses inflation. These factors, along with the recent government efforts, can soon materialise moderation in food inflation in the coming months,” the ministry said.
Going forward, while domestic consumption and investment demand are expected to continue driving growth, global and regional uncertainties and domestic disruptions may keep inflationary pressures elevated for the coming months, warranting greater vigilance by the government and the RBI, it added.
Russia’s decision to terminate the Black Sea Grain deal, along with dry conditions in major wheat-growing areas, caused the price spike in cereals. While domestic factors like white fly disease and uneven monsoon distribution exerted pressure on vegetable prices in India, it added.
During July, cereals, pulses and vegetables exhibited double-digit inflation compared to the corresponding period last year. Disruption in domestic production also aggravated the inflationary pressures. Interruption in the supply chain of tomatoes due to white fly disease in Kolar district, Karnataka and the swift arrival of monsoon in northern India caused a surge in tomato prices. Tur dal price also inflated due to deficient production in kharif season 2022-23, the ministry said.
The RBI’s interest rate setting committee had earlier this month decided to keep policy rates unchanged and remained focused on the withdrawal of accommodation to ensure that inflation progressively aligns with the target while supporting growth.
The Monetary Policy Committee (MPC) expected vegetable prices to correct in the coming months, but flagged the presence of uncertainties on the domestic food price outlook due to sudden weather events, possible El Nino conditions in August and beyond, and the firming up of global food prices. In this context, the MPC revised its inflation projection for current fiscal from 5.1 per cent to 5.4 per cent.
Cumulative rainfall during this year’s southwest monsoon season till August 18, 2023 has been deficient by about 6 per cent compared to long period average. As on August 18, 2023, farmers have sown 102.3 million hectares, which is similar to the corresponding period last year’s level and 1.1 per cent higher than the average of the last five years.
The monthly report from the finance ministry’s Department of Economic Affairs further said that the agricultural sector is picking up momentum with significant advancement in monsoon and kharif sowing. The procurement of wheat and rice has been progressing well, increasing the buffer stock levels of food grains to ensure food security in the country.
With regard to investment, the report said the government’s continued emphasis on capital expenditure is expected to drive growth in the coming years. The Union government in FY24 budget increased the capital outlay by 33.3 per cent, raising the share of capital expenditure in total expenditure from 12.3 per cent in 2017-18 to 22.4 per cent in 2023-24 (BE).
“Enhanced provision for capital expenditure by the government is now leading to crowding in of private investment, as evident in the performance of various high-frequency indicators and industry reports which highlight the emergence of the green shoots of a private capex upcycle,” the report said.
It further said the Government has been making various attempts to raise investment by the private sector. The Production-Linked Incentive (PLI) scheme is providing capital expenditure-linked incentives to 14 key sectors. The PM Gati Shakti, coupled with the National Infrastructure Pipeline (NIP), is expected to encourage private-sector participation in creating new infrastructure and help in onboarding major private sector infrastructure players.
Going forward, the PLI and new-age sectors (such as green hydrogen, semiconductors, wearables and solar modules) are expected to account for nearly 17 per cent of the capex between FY13 and FY27, it said.
“The healthy balance sheet of the private sector, with increased capex by the government, is anticipated to increase the opportunities for the private sector to participate in myriad infrastructure initiatives. The capacity utilisation in the manufacturing sector is now above its long-run average, signalling the need for additional capacity creation as demand sustains the domestic economy,” it added. PTI JD HVA
Sensex and Nifty closed flat after a volatile trade on Tuesday as investors booked profits amid concerns over potential rate hikes in the US and persistent foreign fund outflows
Published Date – 06:55 PM, Tue – 22 August 23
Mumbai: Benchmark stock indices Sensex and Nifty closed flat after a volatile trade on Tuesday as investors booked profits amid concerns over potential rate hikes in the US and persistent foreign fund outflows.
The BSE barometer eked out gains of 3.94 points or 0.01 per cent to settle at 65,220.03. During the day, it climbed 146.82 points or 0.22 per cent to a high of 65,362.91.
The NSE Nifty inched up 2.85 points or 0.01 per cent to settle at 19,396.45.
“Despite the support of positive international markets, Indian equities struggled to maintain their upward momentum due to lingering apprehensions over ongoing global uncertainties,” Vinod Nair, Head of Research at Geojit Financial Services said.
Sectors closely tied to the Western economy, such as IT and pharma, faced challenges, while domestic-oriented sectors, alongside mid and small-caps, exhibited resilience and gained traction.
“The influence of higher bond yields and concerns about potential rate hikes in the US is prompting FIIs to withdraw funds from the domestic market, contributing to the market’s volatility,” Nair said.
From the Sensex pack, ITC, Mahindra & Mahindra, Wipro, Larsen & Toubro, Axis Bank, Tata Steel, Maruti and Bharti Airtel were the major gainers.
Jio Financial Services, Bajaj Finserv, State Bank of India, ICICI Bank, Tata Consultancy Services, HDFC Bank, Tech Mahindra and UltraTech Cement were among the laggards.
Shares of Jio Financial Services, the demerged financial services unit of Reliance Industries, listed on the bourses on Monday.
With the company’s listing, BSE Sensex and NSE Nifty added Jio Financial Services to their pack. This has been done to ensure price stability and limit volatility in shares of Reliance Industries as part of the revised methodology of the exchanges to treat demergers.
The newly listed entity would be removed from the indices on the third day of its listing.
“Markets ended flat with a positive bias in an extremely lacklustre trading session, as traders preferred to stay on the sidelines after witnessing choppy trades over the past week or so.
“Despite the range-bound session, buying activity was seen in power and capital goods stocks, while IT stocks failed to deliver, despite a strong upsurge in the tech-heavy Nasdaq in overnight trades,” said Shrikant Chouhan, Head of Research (Retail), Kotak Securities Ltd.
In the broader market, the BSE midcap gauge climbed 0.94 per cent and smallcap index jumped 0.89 per cent.
Among the indices, telecommunication climbed 2.10 per cent, utilities rallied 1.58 per cent, power jumped 1.44 per cent, capital goods (1.25 per cent), industrials (1.16 per cent) and FMCG (0.70 per cent). IT and bankex were the laggards.
In Asian markets, Seoul, Tokyo, Shanghai and Hong Kong settled in the green.
European markets were trading with gains. The US markets ended mostly in the positive territory on Monday. Global oil benchmark Brent crude declined 0.18 per cent to USD 84.31 a barrel.
Rupee recovered from its all-time low levels and settled for the day higher by 19 paise at 82.94 (provisional) against the US dollar
Published Date – 07:20 PM, Tue – 22 August 23
New Delhi: The rupee recovered from its all-time low levels and settled for the day higher by 19 paise at 82.94 (provisional) against the US dollar on Tuesday, as the American currency retreated from its elevated levels.
Forex traders said the rupee appreciated tracking a weak tone in the US dollar. However, selling pressure by foreign investors amid risk aversion in global markets dented sentiments.
At the interbank foreign exchange market, the local unit opened at 83.07 against the US dollar and moved in a range of 82.93 to 83.09 in the day trade.
The rupee finally settled 19 paise higher at 82.94 (provisional) against the previous close.
On Monday, the rupee depreciated by 3 paise and settled for the day at an all-time low of 83.13 against the US dollar. The Indian rupee appreciated on the weak US dollar and positive domestic markets. The decline in crude oil prices also supported the rupee, while selling pressure by foreign investors capped sharp gains, said Anuj Choudhary – Research Analyst at Sharekhan by BNP Paribas.
The US dollar declined on positive Asian and European markets and strong euro and pound.
“We do not see any sharp appreciation in the rupee as we expect the US dollar to recover amid the hawkish tone of the US Federal Reserve and continued selling pressure from FIIs,” Choudhary said.
“However, a rise in risk appetite in global markets may support rupee at lower levels. US 10-year treasury yields rose to the highest levels since November 2007 on expectations of higher interest rates.
“Investors may remain cautious ahead of the BRICS summit and Fed Chair, Jerome Powell’s speech at Jackson Hole Symposium this week. USDINR spot price is expected to trade in a range of Rs 82.70 to Rs 83.30,” Choudhary added.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.16 per cent to 103.13.
Brent crude futures, the global oil benchmark, declined 0.51 per cent to USD 84.03 per barrel.
On the domestic equity market front, the BSE Sensex closed 3.94 points or 0.01 per cent higher at 65,220.03. The broader NSE Nifty advanced 2.85 points or 0.01 per cent to 19,396.45.
Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Monday as they offloaded shares worth Rs 1,901.10 crore, according to exchange data.
Chinese stocks hit nine-month lows and the yuan fell on Monday as the authorities’ efforts to revive demand failed to inspire investors
Published Date – 07:45 PM, Tue – 22 August 23
Beijing: As China’s currency continues to weaken, Chinese stocks hit nine-month lows and the yuan fell on Monday as the authorities’ efforts to revive demand failed to inspire investors, reported Channel News Asia.
These investors are now showing less confidence in Beijing’s ability to restore momentum in the economy. Moreover, a smaller-than-expected-cut in a key lending benchmark disappointed markets. It, however, emphasized the constraints Beijing faces in reviving the demand through monetary easing amid broader worries about collapsing currency and the capital flight.
China, the world’s second-largest economy is currently dealing with an unprecedented debt crisis in its massive property sector. It has also soured investor sentiment in the country as growth stalls, Channel News Asia reported.
Since late November last year, China’s blue-chip index and Hong Kong’s Hang Seng Index both fell to the lowest level, disappointed by the measures announced on Friday by China’s securities regulators which aimed at strengthening investor confidence. Charu Chanana, market strategist at Saxo in Singapore said, “China’s corporates and households are in a deleveraging mode, and rate cuts will not be enough to change that. Authorities are likely starting to realise that.”
“Rate cuts only put more pressure on banks, and broader measures to address capital adequacy and solvency issues will be needed to revive sentiment and activity levels,” she added. The onshore yuan eased roughly 0.3 per cent to about 7.30 per dollar, reported Channel News Asia. The currency fell even after Beijing vowed to stabilise the currency and much stronger than expected central bank guidance, as investors struggled to shake broader worries about weak exports, sluggish consumption and property market vows.
However, China lowered its one-year benchmark lending rate on Monday. But, it shook the markets by not changing the five-year rate on which mortgage rates are based. According to Channel News Asia, analysts say Monday’s modest rate cut shows authorities are concerned about the risks of a major yuan selloff and capital flight, with any easing likely to widen the yawning gap between interest rates in China and its major trading partners.
Such concerns could limit the scope policymakers have to loosen monetary settings which would only contribute to investors’ disappointments about Beijing’s response to the current economic slowdown. Masayuki Kichikawa, chief macro strategist at Sumitomo Mitsui DS Asset Management said, “Probably China limited the size and scope of rate cuts because they are concerned about downward pressure on the yuan. Chinese authorities care about currency market stability.” Furthermore, Goldman Sachs on Monday cut its forecast on Chinese stocks and expected a lower trading range until more forceful responses to the housing market woes.
The Chief Economist at GROW Investment Group, Hong Hao said that China needs policy goals that include specific numbers such as the size of infrastructure stimulus, or how many flats will be redeveloped under the urban village revamp programme, reported Channel News Asia. “To boost confidence, what we need now is a ‘flood-irrigation’ approach rather than targeted, piecemeal policies,” he added.
The Securities and Exchange Board of India has sought comments from the public on the proposals till September 12
Published Date – 07:55 PM, Tue – 22 August 23
New Delhi: Capital markets regulator Sebi on Tuesday proposed to recognise an entity designated as Research Analyst Administration and Supervisory Body (RAASB), which will be responsible for the administration and supervision of the research analysts.
In its consultation paper, Sebi said that the proposed body should not place any additional financial burden on the research analysts (RAs). Further, the application fee and registration fee as specified under the current RA Regulations has been proposed to be rationalised accordingly.
In addition, it has been suggested to amend the rules to provide that membership of RAASB should be one of the eligibility criteria for consideration of the grant of registration certificate as RA.
“Considering the evolving nature of business of RAs, it is proposed that, on similar lines as IAASB, Sebi may recognise a body, designated as Research Analyst Administration and Supervisory Body to administer and supervise RAs and thereby extend the framework for administration and supervision to RAs as in the case of IAs,” the consultation paper noted.
Earlier, Sebi granted recognition to an entity designated as an Investment Adviser Administration and Supervisory Body (IAASB) for the administration and supervision of Investment Advisers (IAs).
After seeking the interest of eligible stock exchanges, BSE Administration & Supervision Ltd (BASL), a wholly-owned subsidiary of stock exchange BSE, was granted recognition as IAASB for a period of three years from June 2021. Later, Sebi provided a framework for the administration and supervision of IAs specifying the role and responsibilities of IAASB.
Apple unveiled its next-generation iPhones on Tuesday and the event held at the company’s headquarters in Cupertino, US. The event was attended by none other than two -time Olympic medallist Sindhu.
Taking to Instagram, Sindhu shared a selfie with Apple CEO and dubbed the moment “unforgettable” and also put up an offer to play badminton with Cook on his next visit to India.
“An unforgettable moment meeting Tim Cook on keynote day at Apple Cupertino! Thank you for having me, Tim. It was a pleasure to see the stunning Apple Park and to meeting you!
I will gladly take you up on the offer to play badminton when you visit India next,” Sindhu wrote in a caption.
In a separate post, the 28-year-old shared pictures from her interaction with Cook and wrote: “I find myself immersed in an #apple keynote event that promises innovation, excitement, surprises and of course a great conversation. Thank you Tim Cook”.
Apple on Tuesday debuted the new iPhone series with four models — iPhone 15, 15 Plus, 15 Pro and 15 Pro Max — that come with industry-leading features. For the first time, the ‘Make in India’ iPhone 15 will be available from the day of the global sales (September 22).
