EMERGING MARKET CURRENCIES
South Korea’s world-beating stock market eyes its MSCI moment
Now investors are awaiting MSCI Inc.’s annual market-classification review on June 23, when the index provider will decide whether Korea finally earns a place on the watchlist for developed-market status, the first step toward an eventual upgrade.
FPI exodus continues, Rs 62,800 cr pulled out from equities in first fortnight of June
Foreign investors continue to sell Indian shares. They have withdrawn over Rs 62,853 crore in early June. This follows significant outflows in previous months. Geopolitical tensions and global growth worries are driving these sales. The weakening rupee also plays a role. However, the pace of selling eased recently. Investors are seeking safety in developed markets.
FCNR(B): Revisiting a proven crisis management tool
Facing renewed external sector pressures, the RBI has revived a version of the FCNR(B) deposit framework to attract foreign currency inflows and support the rupee. While effective for near-term stability, experts say long-term resilience requires reducing structural vulnerabilities and import dependence.
ETMarkets Smart Talk| RBI's FPI reforms could attract $50-100 billion into Indian debt over time: Vikas Garg of Invesco MF
RBI’s easing of foreign investment norms for government securities could attract substantial long-term capital inflows into India’s debt market, according to Invesco Mutual Fund. The reforms may deepen bond markets, support the rupee, improve liquidity and strengthen macroeconomic stability.
Rupee rallies as oil slump sparks unwinding of dollar longs
The Indian rupee experienced a robust uptick against the dollar on Friday, sparked by newfound optimism regarding peace talks between the U.S. and Iran. This positive development resulted in a sharp decrease in oil prices, alleviating some of the pressure on India’s import expenses.
Nifty in control of FIIs? The unlucky 13 bluechips facing the hardest institutional selloff
Foreign investors have significantly reduced holdings in many Nifty companies since September 2024. This has impacted top blue-chip stocks, causing market returns to stagnate. Domestic institutional investors have stepped in, absorbing much of this selling pressure. Experts suggest this is a market recalibration, not a complete exit from India. Investors are advised to focus on earnings growth and disciplined allocation.
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Banks raise NRI deposit rates to draw dollar inflows
Indian banks are offering higher interest rates on foreign currency deposits. This move aims to attract money from overseas residents. The Reserve Bank of India has introduced new measures to boost dollar inflows. These efforts are designed to strengthen the Indian rupee. Experts predict significant inflows could stabilize the currency. This strategy revives a successful approach from 2013.
World Bank cuts global growth forecast to 2.5%; India seen growing 6.6% amid Iran war
Global economic growth is set to slow to 2.5% this year. The World Bank attributes this to the Iran war, which has driven up energy prices and created uncertainty. Developing nations face a significant slowdown. While the US economy remains resilient, other countries are experiencing harder impacts. Disruptions in energy and fertiliser trade are a major concern.
SpaceX’s IPO success may rub off on Ambani
Investor interest in major tech offerings remains strong. Mukesh Ambani's Jio Platforms is preparing for a significant IPO in India. However, historical data indicates that large IPOs can signal market peaks. Concerns exist about liquidity draining from secondary markets. This could impact the success of upcoming Indian listings. Careful consideration of market conditions is advised.
India's bond tax exemptions set to boost foreign debt inflows and global index inclusion bid
India is turning heads in the financial world by scrapping taxes on foreign investments in government bonds. This groundbreaking change aims to attract a significant amount of overseas capital while simplifying the way foreign investors navigate its debt market. As India gears up for potential entry into major global indexes, there’s a tangible increase in interest from abroad.
Banks pay 7% on dollar deposits as India seeks fresh foreign currency
Indian banks are significantly increasing rates on foreign-currency deposits to attract overseas residents, testing the central bank's new measures to boost capital inflows and support the rupee. This strategy aims to strengthen the currency amidst high oil prices and intense domestic deposit competition.
Rupee to average around 96/USD in FY27; risks from oil, dollar persist: Motilal Oswal
The Indian rupee is projected to average around 96 against the US dollar in FY27. However, this outlook faces potential challenges including dollar strength and crude oil price fluctuations. Despite a widening trade deficit, strong capital inflows and RBI intervention are expected to prevent a sharp depreciation.
Will AI-led tech unwinding pause Rs 60,000 crore FII selloff in Indian IT stocks?
Global markets are experiencing a tech selloff driven by AI fears, impacting Indian IT stocks with FIIs pulling Rs 60,000 crore. However, some analysts believe the sector is poised for recovery, arguing Gen-AI presents an opportunity rather than an existential threat. Valuations have become attractive, leading to upgrades for major IT firms.
GIFT Nifty rises 100 points, hints at positive start; key trading cues for today
Indian markets closed higher on Tuesday, boosted by banking and financial stocks. The Reserve Bank of India's new forex swap facility eased overseas borrowing concerns. Market sentiment improved with hopes of a Middle East truce and falling crude oil prices. Investors remain watchful due to ongoing geopolitical tensions and inflation worries.
India may have brokered a rupee truce, but hasn't won peace yet
India has unveiled a package aimed at supporting the rupee without resorting to capital controls, a move seen as more market-friendly than during the 2013 currency crisis when overseas remittance limits were tightened. Instead, authorities are encouraging state-owned firms and banks to raise dollars abroad and bring them back to India, while offering concessions on hedging costs.
Private sector banks are the best contrarian bet for the next 3 years, says S Naren
ICICI Prudential AMC CIO S Naren warned that rising leverage through derivatives and margin trading poses a bigger risk than any slowdown in mutual fund inflows. He sees private sector banks as attractive contrarian bets and remains optimistic on India's debt market amid improving fundamentals.
Rupee slumps as elevated crude, Treasury yields support dollar
A raft of measures aimed at supporting the currency battered by the impact of the months-long Iran war had boosted the rupee to its best day in two months on Friday.
Engineering exports rise to $122 billion, emerge as India's largest export segment
This remarkable growth, driven by government support and a diversified product basket, highlights the sector's resilience and global competitiveness despite challenging trade conditions.
India eyes major bond index entry as tax exemptions sweeten appeal
India is set to reapply for inclusion in major global bond indices. This follows significant tax exemptions for foreign investors on capital gains and withholding taxes. The country has also expanded its long-dated securities pool. Officials are engaging with global index operators and the Bank for International Settlements. These moves aim to attract substantial foreign investment into Indian government bonds.
Rupee slide pushes overseas students back to lenders for top-up loans
A significant rupee depreciation has forced Indian students studying abroad to seek top-up loans from lenders, as initial loan amounts fall short of rising tuition and living expenses. This has led to a nearly threefold increase in demand for additional funding, with students requiring Rs 1-6 lakh more.
More economic safeguards on the cards as West Asia conflict persists: Report
India is preparing new measures to protect its economy from the West Asia conflict. The government will introduce these steps gradually as needed. The focus is on ensuring supply of goods and raw materials. Stability in the rupee and foreign exchange is also a priority. This calibrated approach aims to manage emerging risks effectively.
Capital gains relief for FPIs on G-secs a 'very helpful measure', but bond yields may not go down soon: Rama Mohan Rao Amara, SBI
State Bank of India Managing Director Rama Mohan Rao Amara welcomes the government's move to exempt foreign investors from capital gains tax on Indian government securities. This decision aims to attract foreign capital when emerging markets face global pressure. Amara believes this will encourage foreign portfolio investors to reconsider Indian debt.
Strong backing, but light touch: What is the RBI's rupee playbook?
The Reserve Bank of India will let the rupee's value be set by the market. It will only step in if trading becomes too unstable. Simultaneously, the RBI is introducing new plans to bring more foreign money into India. These steps aim to strengthen the country's finances amid global uncertainty.
MPC Forex Level: India’s forex reserves remain healthy at $682.3 billion, says RBI Governor Sanjay Malhotra
India's foreign exchange reserves are strong at $682.3 billion. The Reserve Bank of India has used these reserves to stabilize the rupee. Despite recent declines, reserves remain sufficient for imports and external debt. Policy reforms and trade agreements are expected to boost the economy. India is well-positioned to handle global economic challenges.
RBI MPC June meet 2026: What's cheaper and what's costlier
The Reserve Bank of India has maintained the repo rate at 5.25%. This decision comes as policymakers assess the effects of higher energy prices and supply chain issues. The ongoing West Asia conflict is a key factor. Home loans and business borrowing costs are expected to remain stable. Savers will likely see fixed deposit rates stay near current levels.
RBI courts overseas investors as oil prices and capital outflows weigh on rupee
The Reserve Bank of India has introduced new measures to draw foreign investment. These steps aim to boost the country's finances and support the rupee. The RBI is easing rules for foreign investors in government bonds. It is also making it simpler for overseas Indians and residents to invest.
India gold prices soar 4.1% in May despite decline in global prices: World Gold Council
Indian gold prices saw a notable increase in May, defying global trends. This rise occurred even as international gold prices dipped. Local currency weakness and policy adjustments contributed to the gains. The World Gold Council report highlights India's resilience amidst geopolitical tensions and market volatility. Demand from India and other key markets could support gold prices going forward.
The rupee warning: Six actions for business leaders
The Indian rupee is dipping to historic lows, approaching the 100-dollar threshold. Driven by market sentiment and a perilous cycle of foreign debt for Indian businesses, it’s imperative for corporate leaders to take immediate action. Protecting cash flow, strategising on foreign debt management and implementing stringent cost control are vital now more than ever.
Rupee could fall to 98/USD by July amid energy crisis, BofA Securities exec says
The Indian rupee faces a potential record low of 98 against the dollar by July due to the Middle East energy shock, impacting domestic assets. Despite authorities' protective measures and calls for a rate hike, BofA Securities anticipates gradual increases later in the year. Foreign investors have significantly withdrawn funds, adding to currency pressure.
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