Page 2 - Foreign Capital Inflows

India needs 'balancing act' to manage bond index capital flows, says S&P

The index inclusion is expected to attract $40 billion in inflows in 18 months, according to estimates from Goldman Sachs Group Inc. and others

Foreign inflows into index-eligible India bonds set to hit $10 billion

Investments into index-eligible Fully Accessible Route bonds have risen by Rs 81,218 crore ($9.8 billion) since the announcement in September, data from the Clearing Corp. of India show

Indian real estate in 2023 saw highest investment inflows since 2020

The leading sources of foreign capital in Indian real estate were Canada and Singapore accounting for 78% of the total inflows

Foreign inflows to Indian bonds set for highest in 6 years over index call

Inflows to fixed income, including corporate debt, have reached nearly $6 billion thus far in 2023, with this month alone accounting for about a quarter of the flows, according to data compiled

Rupee rises 6 paise to 82.02 against dollar due to steady foreign inflows

The rupee gained 6 paise to 82.02 against the US dollar in early trade on Thursday supported by steady foreign fund inflows. However, a surge in crude oil prices capped sharp gains for the local unit, forex traders said. At the interbank foreign exchange, the domestic unit opened at 82.05, then touched a high of 82.02 against the American currency, registering a rise of 6 paise over its last close. On Wednesday, the rupee had settled at 82.08 against the dollar. Softness in the US dollar and sustained FII inflows supported the rupee, forex traders said, adding that the strength in crude oil prices remains a concern for the local unit, as a sharp surge in prices could limit its gains. Participants in the rupee and dollar markets are eagerly awaiting cues from the upcoming Federal Reserve rate decision next week, traders said. The dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.22 per cent to 100.06. Brent crude futures, the global oi

Rupee gains 8 paise to 81.60 against US dollar as 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

Asian central banks need broader foreign exchange defence as reserves slide

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

Drop in India's forex reserves worrisome as inflows slow down: Economists

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

CAD as percentage of GDP: Nowhere near 2012-13 level, yet worrisome

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

China expects long-term capital inflows to return despite recent volatility

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

Return of FIIs: Valuations attract foreign capital after 6-month hiatus

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

Foreign capital in realty jumped 3-fold to $23.9 bn during 2017-21: Report

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

Fintech hub at GIFT City: IFSCA in talks with overseas regulators

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

Reserve Bank of India unlikely to let rupee appreciate much: Experts

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

Acharya warns against systemic risk building on low rates, high liquidity

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

Foreign investors pour $538 mn into Indian bonds in Sept, turn net buyers

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

Managing markets

Bond and currency markets would increase policy difficulties

India vulnerable to oil price, capital inflow shocks: RBI ex-governor Reddy

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

The exchange rate is the shock absorber

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