Tag: rate hike

Last quarter economy of India probably grew at the fastest rate in a year driven by healthy consumption, but the pace of expansion is seen slowing as policymakers prioritize rising prices overgrowth. Gross domestic product is estimated to rise 15.4% in the three months to June from a year ago, according to a Bloomberg survey of economists. That’s the fastest reading since the April-June quarter of 2021 and compares with a 4.09 expansion in the previous three months. Read more

Markets have found it tough to cling to higher ground. CHRISTOPHER WOOD, global head of equity strategy at Jefferies advises that investors should look to sell stocks on a rally in the short term. What will see the markets rally is a sudden end to the Russia – Ukraine conflict as it will ease supply pressure across commodities, he tells. He also suggested that the bet for a sustained equity market rally before the 2022 end is a possible change in the US Fed's language.

Foreign investors pulled out a massive ₹41,000 crore from the Indian equity market in March in anticipation of rate hikes by the US Federal Reserve and the deteriorating geopolitical environment amid the Russia-Ukraine war, continuing their selling spree for the sixth consecutive month. Flows from foreign portfolio investors (FPIs) are expected to remain volatile in the near term given the headwinds in terms of elevated crude prices and inflation, experts said. According to data available with the depositories, FPIs were net sellers to the tune of ₹41,123 crores in the equity market last month. This was way higher than net withdrawals of ₹35,592 crore in February and ₹33,303 crore in January. Read more

It was a horrible ‘Black Friday’ for the Indian markets that saw an across-the-board sell-off. The S&P BSE Sensex shaved off over 1,400 points in intra-day deals. Its counterpart on the National Stock Exchange, the Nifty50 index, lost over 400 points. The negative sentiment today(26th Nov.2021) in the Indian markets was on account of weak global cues. Most Asian markets were a sea of red with Japan’s Nikkei down 2 percent and Straits Times slipping nearly one percent. Shanghai Composite, Kospi, and Taiwan were down 0.2-0.4 percent, each. The US markets, however, were shut on account of the Thanksgiving holiday. This weak sentiment across Asian markets was triggered by fears of a sooner-than-expected rate hike by the US Federal Reserve (US Fed). Investors and traders, according to analysts, now expect the US central bank to raise rates faster on the back of the recently released FOMC minutes. Read more

Analysts across the spectrum lauded the Reserve Bank of India's money policy, as they believe a 'wait and watch' approach is appropriate for the time being. RBI kept all policy rates unchanged to bolster a fragile economic recovery and reiterated an accommodative stance to back sufficient liquidity and keep borrowing costs low for both the state and companies to help drive investments. Analysts, though, saw some signs of tightening ahead in Shaktikanta Das’ speech. “RBI signalled the beginning of gradual 'tapering'of liquidity by extending VRR auction tenor, a measure widely expected by markets. While RBI has refrained from committing any GSAP amount to support bond yields, its emphasis on an ‘orderly evolution of the yield curve’ should provide comfort to the bond market,” said Churchil Bhatt, EVP Debt Investments, Kotak Mahindra Life Insurance. Read more