74: The rupee crossed the 74 mark against the dollar in intra-day trade on March 6.
- The Indian rupee has come under pressure in recent days and is expected to soon touch the 75 mark against the US dollar.
- Till March 5 (closing 73.32), the rupee had fallen 2.87 per cent against the greenback over the past month.
- All this is happening primarily because of the risk-off sentiment that has gripped investors in the wake of the Coronavirus scare.
- Foreign institutional investors (FIIs) have pulled out Rs 3,419 crore from the Indian equity market, and Rs 2,114 crore from the debt market, in March so far.
- Another factor that has contributed to the rupee's weakness is the RBI's decision to take control of YES Bank, India's fifth-largest private sector bank. This has exacerbated the risk-off sentiment in the Indian currency market.
Disclaimer: This information is from a third party—Business Standard—offered through a tie-up to Kotak Securities customers for free for life. The third party content is not created or endorsed by any business offering products or services through it. The provision of this third party content is for general informational purposes only and does not constitute a research call, recommendation or solicitation to purchase or sell any security or make any other type of investment or investment decision. Also, the views and opinions stated in the content belong to Business Standard. Kotak Securities does not uphold nor promote any of the views. These reports do not, in any way, qualify as a Kotak Securities research report.
A few links for further reading
Invest and emigrate
The great Indian dream of settling abroad is achievable if one has a few crores to invest. Rich nations offer a variety of investment options in a quid pro quo arrangement: immigrants get a better quality of life and revenue from them helps these countries’ finances. Wealthy Indians, troubled by polluted cities and the red tape holding up entrepreneurship, may want a quick ticket out of the country. Sanjay Kumar Singh lists a range of options: from a Canadian province’s investor programme to America’s US EB-5 plan.
Small savings schemes
Investors in small savings schemes breathed a sigh of relief when the government announced on October 1 that interest rates on these instruments would not be revised for the fourth quarter of the calendar year. With the economy witnessing a slowdown, and the stock markets also turning volatile, many investors are looking for alternative avenues to park their savings. Small savings schemes, with their sovereign guarantee, have emerged as a viable alternative.
Hard path to growth
The signals for the economy are not positive: overall demand is yet to pick up; the share of total exports in India’s GDP is declining, and industrial output pattern remains worrying.