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☆ India's growth to slow in 2023 on fading reopening impact-Goldman Sachs
▼ + stars: | 2022-11-21 | by ( ) www.reuters.com time to read: +2 min

MUMBAI, Nov 21 (Reuters) - Goldman Sachs expects India's economic growth to slow to 5.9% next year, from an estimated 6.9% growth in 2022, as the boost from the post-COVID reopening fades and monetary tightening weighs on domestic demand. "In the second half, we expect growth to re-accelerate as global growth recovers, the net export drag declines, and the investment cycle picks up," Sengupta said. The Reserve Bank of India (RBI), last week, pegged the domestic growth rate at 7% for 2022-23. Goldman Sachs expects headline inflation to drop to 6.1% in 2023, from 6.8% in 2022, saying government intervention was likely to cap food prices and that core goods inflation had probably peaked. "But upside risks to services inflation are likely to keep core inflation sticky around 6% year-on-year," Sengupta added.

☆ India's forex reserves rise at fastest pace since August 2021
▼ + stars: | 2022-11-18 | by ( ) www.reuters.com time to read: +1 min

MUMBAI, Nov 18 (Reuters) - India's foreign exchange reserves (INFXR=ECI) rose to $544.72 billion in the week through Nov. 11, marking their biggest weekly jump in more than a year, the Reserve Bank of India's (RBI) weekly statistical supplement showed on Friday. The country's reserves were at $529.99 billion by Nov. 4. In the week ended Nov. 11, softer-than-expected U.S. inflation data helped the rupee mark its best weekly performance in about four years and strengthened it to the 80-per-dollar handle for the first time since mid-September. For the current week, the local currency gave back some of those gains to end down 1.1% at 81.6850 per dollar. Reporting by Anushka Trivedi in Mumbai; Editing by Anil D'SilvaOur Standards: The Thomson Reuters Trust Principles.

☆ India watchdog ire cools foreign banks’ ambitions
▼ + stars: | 2022-11-16 | by ( Shritama Bose | ) www.reuters.com time to read: +4 min

India is bristling at the idea of foreign regulators inspecting its entities which settle trades in government bonds, foreign exchange and more. The higher costs will make the services of European Union and British banks in India uncompetitive, prompting clients to switch to other foreign or domestic banks. Bosses of smaller foreign banks already complain in private that their returns in India are lousy. The Reserve Bank of India, for example, could in theory strike a deal that sets boundaries on on-site visits, as Singapore has done. The Indian regulators include Reserve Bank of India, Securities and Exchange Board of India and International Financial Services Centres Authority, ESMA said.

☆ India's Oct retail inflation eases, spurs smaller rate hike views
▼ + stars: | 2022-11-14 | by ( Manoj Kumar | ) www.reuters.com time to read: +4 min

The annual retail inflation was 7.41% in September. Food prices, which account for nearly 40% of the CPI basket, rose 7.01% in October, compared with 8.60% in September. Month-on-month retail inflation rose 0.80% in October, compared with the previous month, while retail food inflation rose 1.08% — reflecting inflationary pressures in the economy. Last week, ratings agency Moody's revised down India's GDP growth forecast to 7% in 2022, from earlier estimate of 7.7%, and to 4.8% in 2023. Excluding the volatile food and energy components, the core inflation rose 5.9% to 6.3% last month, according to three economists' estimates, compared to 6.07% to 6.1% in September.

☆ Indian companies turn to exotic options to manage fx costs, risks
▼ + stars: | 2022-11-09 | by ( Nimesh Vora | ) www.reuters.com time to read: +3 min

MUMBAI, Nov 9 (Reuters) - A few large Indian companies are returning to exotic currency options to deal with the rupee's volatility as they look to manage hedging costs and foreign exchange risks. These options provide companies increased flexibility to manage their currency risks. Companies are specifically turning to barrier options, a class of knock-out or knock-in options that are exercisable or expire worthless depending on whether a particular level on the underlying asset is reached. When used with proper risk assessment, barrier options help to manage the premium cost, a trader with a large private sector bank said. Meanwhile, foreign exchange consultants warned against large-scale use of exotic options.

☆ 'Comfort zone' for inflation in India is between 4% and 6%, says former central bank chief
▼ + stars: | 2022-11-08 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via Email'Comfort zone' for inflation in India is between 4% and 6%, says former central bank chiefC. Rangarajan, former governor of the Reserve Bank of India, discusses the factors that have contributed to the rise in inflation, such as the sudden rise in petroleum prices after the Russia-Ukraine war broke out.

☆ India should allow gradual rupee weakening, use fx reserves 'judiciously' - govt adviser
▼ + stars: | 2022-11-07 | by ( Shivangi Acharya | ) www.reuters.com time to read: +2 min

NEW DELHI, Nov 7 (Reuters) - India's central bank should allow rupee to depreciate gradually and use foreign exchange reserves judiciously, the government's chief economic adviser V. Anantha Nageswaran on Monday. Nageswaran comment on the rupee and foreign exchange reserves is the first official government comment since concerns about dwindling currency reserves emerged earlier this year. India's foreign currency reserves have fallen from a peak of $642 billion to $531 billion partly due to dollar sales to support the rupee. “We should in the short-run allow the rupee to depreciate gradually and we should use forex exchange reserves judiciously,” Nageswaran said at an online event. “We should augment foreign exchange reserves and that will help with any contingencies,” he added.

☆ INDIA STOCKS Indian shares set for lower opening as Fed keeps hawkish stance
▼ + stars: | 2022-11-03 | by ( ) www.reuters.com time to read: +3 min

India's NSE stock futures, listed on the Singapore exchange , were 0.94% lower as of 0211 GMT. The Federal Reserve raised interest rates by 75 basis points on Wednesday as widely expected and said its battle against inflation will require borrowing costs to rise further. Meanwhile, foreign institutional investors bought a net 14.36 billion Indian rupees ($173.61 million) worth of equities on Wednesday, while domestic investors sold 13.78 billion rupees of shares, as per provisional data available with the National Stock Exchange. ** Mahindra and Mahindra Financial Services Ltd (MMFS.NS) reported September-quarter profit of 4.48 billion rupees, a 56.2% year-on-year decline. ($1 = 82.7120 Indian rupees)Reporting by Rama Venkat in Bengaluru;Editing by Dhanya Ann ThoppilOur Standards: The Thomson Reuters Trust Principles.

☆ INDIA RUPEE Rupee eases as Fed sticks to hawkish tone
▼ + stars: | 2022-11-03 | by ( Anushka Trivedi | ) www.reuters.com time to read: +1 min

The rupee eased to 82.85 per dollar, against its previous close of 82.78. The currency had consolidated around 82.70 all of this week ahead of the U.S. central bank meeting. The Fed raised its benchmark funds rate by 75 basis points (bps) to 3.75%-4% as widely expected overnight. "This gives some breather to India as the country's central bank may not have to hike as aggressively." The Reserve Bank of India meets later in the day for a special meeting, most likely to discuss its first ever inflation target miss.

☆ INDIA STOCKS Indian shares set for muted opening; Fed meet in focus
▼ + stars: | 2022-11-02 | by ( ) www.reuters.com time to read: +3 min

** Adani Ports and Special Economic Zone APSE.NS, India's largest private operator of ports, reported a 69% surge in quarterly profit on Tuesday, driven by strong cargo volumes. ** Sun Pharmaceutical Industries Ltd (SUN.NS) on Tuesday reported a surprise 10.5% rise in second quarter profit led by a surge in sales of specialty drugs. ** IT services provider Tech Mahindra (TEML.NS)reported better-than-expected quarterly profit and revenue on Tuesday, helped by strong demand and the company also declared a special dividend. ** Kansai Nerolac Paints Ltd (KANE.NS)reported a weaker-than-expected rise in second quarter profit on Tuesday, hit by higher input costs and a demand squeeze due to unseasonal rains. ** Voltas Ltd (VOLT.NS)posted a loss for the second quarter on Tuesday, dented by higher expenses and a one-off expense related to a contract termination.

☆ INDIA STOCKS Indian shares seen opening higher, Fed in focus
▼ + stars: | 2022-11-01 | by ( ) www.reuters.com time to read: +3 min

BENGALURU, Nov 1 (Reuters) - Indian shares may kick off November trading on a higher note on Tuesday, after rising for three straight sessions, tracking gains in broader Asia as investors turn focus to the U.S. Federal Reserve policy meeting this week. India's NSE stock futures, listed on the Singapore exchange , were 0.61% higher as of 0203 GMT. Investors this week will be looking for the outcome of the Fed policy meeting and the outlook on future rate hikes path. The Fed is widely expected to raise interest rates by 75 basis points on Wednesday at the conclusion of its two-day policy meeting. ($1 = 82.7910 Indian rupees)Reporting by Rama Venkat in Bengaluru; Editing by Dhanya Ann ThoppilOur Standards: The Thomson Reuters Trust Principles.

☆ India cenbank to start pilot of digital rupee on Nov 1
▼ + stars: | 2022-10-31 | by ( Reuters Staff | ) www.reuters.com time to read: +1 min

FILE PHOTO: A man walks behind the Reserve Bank of India (RBI) logo inside its headquarters in Mumbai, India, April 8, 2022. REUTERS/Francis MascarenhasBENGALURU (Reuters) - The Reserve Bank of India (RBI) will launch the pilot for a central-bank-backed digital rupee for the wholesale segment on Nov. 1, it said on Monday, identifying nine banks, including top lender State Bank of India, to participate in the project. Settlements in central bank digital currency would reduce transaction costs, the RBI added. Besides SBI, the pilot will include Bank of Baroda, Union Bank of India, HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Yes Bank, IDFC First Bank and HSBC, the RBI said. The central bank’s plans for a currency in digital form comes amid its staunch opposition of cryptocurrencies.

☆ Indian rupee marks biggest monthly losing streak since 1985
▼ + stars: | 2022-10-31 | by ( ) www.reuters.com time to read: +2 min

MUMBAI, Oct 31 (Reuters) - The Indian rupee has declined in each of the ten months this year to notch its biggest losing streak in almost four decades as the U.S. Federal Reserve's hawkish stance on monetary policy catapulted the dollar to two-decade highs. The dollar index is up 16% this year, having scaled 114.8-levels last month to trade near its 2002 peak. The Indian rupee fell 1.8% against the dollar in October, taking its slide for the year to nearly 11%. It could come under pressure in case Fed indicates aggressive tightening path in the future," HDFC Bank economists wrote in a note. Reporting by Anushka Trivedi in Mumbai; Editing by Savio D'SouzaOur Standards: The Thomson Reuters Trust Principles.

☆ INDIA STOCKS Indian shares seen opening higher to track Asia gains
▼ + stars: | 2022-10-31 | by ( ) www.reuters.com time to read: +3 min

BENGALURU, Oct 31 (Reuters) - Indian shares may open higher on Monday, after rising for two consecutive weeks, tracking gains in broader Asia and a fall in oil prices. India's NSE stock futures, listed on the Singapore exchange , were 0.92% higher as of 0242 GMT. The MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) was up 0.8%. Stocks to watch:** Sugar stocks after India, the world's biggest sugar producer, extended restrictions for export by one year through October 2023, the government said in a notification late on Friday. ($1 = 82.2610 Indian rupees)Reporting by Rama Venkat in Bengaluru;Editing by Dhanya Ann ThoppilOur Standards: The Thomson Reuters Trust Principles.

Under the provision cited by the RBI for the meeting, the central bank is required to write a letter to the Indian government explaining its inability to meet the target. A source familiar with the matter confirmed that the meeting has been called to discuss the response to be sent to the government. The MPC, established in 2016, is mandated to keep inflation within 2 percentage points on either side of its 4% target. Reuters GraphicsThe central bank has cited a series of supply shocks, most recently due to the Russia-Ukraine conflict, as one of the reasons for missing the inflation target. Reuters reported the government was comfortable with the central bank meeting the target over the medium term.

☆ Russia's VTB Bank opens 'vostro' account at Indian branch
▼ + stars: | 2022-10-26 | by ( ) www.reuters.com time to read: +1 min

SummarySummary Companies This content was produced in Russia where the law restricts coverage of Russian military operations in UkraineMOSCOW, Oct 26 (Reuters) - Russia's No.2 lender VTB (VTBR.MM) on Wednesday said it had opened a special "vostro" account at its Indian branch that would allow for the more active use of Indian rupees in payments under import and export contracts between Russia and India. It follows a similar move by Russia's dominant lender Sberbank (SBER.MM), which on Monday said it was offering clients "vostro" accounts in rupees, aiming to facilitate clients in carrying out rupee-denominated trade transactions which are increasing due to western sanctions. Both state-run banks have obtained permission to open vostro accounts - which a local correspondent bank holds on behalf of a foreign bank - from the Reserve Bank of India (RBI), which earlier this year to put in place a mechanism to facilitate international trade in rupees. The measure was seen as aiding business ties with Russia in case of more stringent Western sanctions against Moscow. Reporting by Alexander Marrow; Editing by David HolmesOur Standards: The Thomson Reuters Trust Principles.

☆ India's ICICI Bank net profit jumps 37% as bad loan provisions drop
▼ + stars: | 2022-10-22 | by ( ) www.reuters.com time to read: +2 min

MUMBAI, Oct 22 (Reuters) - ICICI Bank (ICBK.NS), India's second-largest private-sector lender, reported a 37% rise in quarterly net profit on Saturday as loan growth inched up and provisions for bad loans fell. Net profit for the three-months ending Sept. 30 rose to 75.58 billion rupees ($916 million), broadly in line with analysts' estimate of 73.51 billion rupees, according to Refinitiv IBES data. Net interest income, which is the difference between interest earned and paid out, was 147.9 billion rupees, a rise of 26% on the year-earlier period, the bank said in a statement. Loans increased across segments, including large corporate, although the bank was focusing on higher rated corporate borrowers, it said. The lender is holding adequate liquidity and does not see deposit growth as constraint on the bank's overall growth, said executive director Sandeep Batra.

☆ India's economic growth outlook stagnates, stuck in lower gear
▼ + stars: | 2022-10-20 | by ( Vivek Mishra | ) www.reuters.com time to read: +4 min

It was expected to decelerate further to 4.4% in the fourth quarter, according to an Oct. 13-19 Reuters poll. Register now for FREE unlimited access to Reuters.com RegisterThe median expectation was for 6.9% growth in the 2022-23 fiscal year, slightly above International Monetary Fund (IMF) and World Bank projections of 6.8%. While those figures were only trimmed from the previous poll medians, a deteriorating global economic outlook suggests there may be further downgrades in coming months. "This, we believe, will result in the RBI having to shift its focus toward supporting growth and away from anchoring inflation expectations by engineering a growth slowdown." The poll showed the RBI taking a softer approach with rates.

☆ INDIA RUPEE Rupee hits record low on worries of aggressive U.S. rate hikes
▼ + stars: | 2022-10-20 | by ( Anushka Trivedi | ) www.reuters.com time to read: +3 min

read moreThe partially convertible rupee was trading at 83.16/17 per dollar by 0436 GMT, compared to its close of 83.02 on Wednesday. Register now for FREE unlimited access to Reuters.com Register"We can expect the dollar to continue strengthening as long as the Fed maintains its super hawkish stance. read moreTraders said the falling interest rate differential between India and the U.S. could continue to pressure the rupee. Shilan Shah, India economist at Capital Economics, said in a recent note that 50 bps rate hikes may be off-the-table at the RBI's meeting in early December. "We think other MPC members will have seen enough evidence of growth coming off the boil and price pressures peaking.

☆ India cenbank may need to resume bond buying to manage liquidity deficit -BofA
▼ + stars: | 2022-10-19 | by ( ) www.reuters.com time to read: +2 min

India's banking system liquidity was already at a deficit of 100 billion Indian rupees ($1.21 billion) by this week, with more tax payment related outflows likely. The RBI would need to decide how to maintain money market rates close to policy rates, BofA strategists said. Buying bonds in the open market "would help achieve more than one objective" by injecting liquidity and averting a larger sell-off in bond markets, they added. Like most central banks globally, the RBI had conducted open market operations during the COVID-19 pandemic and stopped in October last year. "The decision on appropriate liquidity surplus or deficit in the system would depend on a few factors, including the monetary policy stance, need to support further credit growth, banking system liquidity skew and currency stability," they said.

☆ INDIA STOCKS Indian shares rise 1% as cenbank eases inflation fears
▼ + stars: | 2022-10-18 | by ( ) www.reuters.com time to read: +2 min

BENGALURU, Oct 18 (Reuters) - Indian shares jumped to three-week highs in early trade on Tuesday, as rate hikes fears were soothed after the country's central bank said inflation looked set to ease and as risk sentiment improved globally on Britain's fiscal policy U-turn. In domestic trading, Nifty's automobile (.NIFTYAUTO), IT (.NIFTYIT), energy (.NIFTYENR) and public sector bank (.NIFTYPSU) indexes climbed more than 1% each. Inflow of funds from domestic investors in equities were strong even as foreign institutional investors sold shares. Foreign investors sold a net of 3.72 billion Indian rupees ($45.3 million) worth of equities on Monday, while domestic investors bought 15.82 billion rupees worth of shares, the National Stock Exchange's provisional data showed. ($1 = 82.1780 Indian rupees)Register now for FREE unlimited access to Reuters.com RegisterReporting by Rama Venkat in Bengaluru; Editing by Savio D'SouzaOur Standards: The Thomson Reuters Trust Principles.

☆ India cenbank's 2013 playbook to rebuild FX reserves unlikely to work-analysts
▼ + stars: | 2022-10-18 | by ( Swati Bhat | ) www.reuters.com time to read: +5 min

Register now for FREE unlimited access to Reuters.com RegisterTo defend the rupee, the Reserve Bank of India has dipped into its forex reserves. "It would be important to rebuild FX reserves for sure. Reuters GraphicsUNPROFITABLE SPREADSBack in 2013, the RBI had offered to swap the U.S. dollars banks had raised via foreign currency non-resident (FCNR) deposits or foreign currency funding for rupees at concessional rates. And while reserves at current levels are adequate to cover more than eight months of imports, analysts say a sustained depletion could cause some concern. Bank of Baroda's Sabnavis suggested floating sovereign bonds, like the Resurgent India bonds (RIBs) India Millennium Deposit bonds (IMDs) in the past, to help boost forex reserves.

☆ Rupee ends flat, gives up intraday gains; outlook dim
▼ + stars: | 2022-10-18 | by ( Nimesh Vora | ) www.reuters.com time to read: +2 min

The rupee closed at 82.36 per dollar, compared with 82.3500 in the previous session. Still, analysts reckon that the rupee will likely add to its 10.5% decline so far this year. "Until the global turmoil eases out and the trend changes across, pressure on the rupee will remain." The rupee's climb to near 82 earlier in the session was aided by investors' relatively stronger risk appetite. Open interest on USD/INR futures on the NSE fell, likely due to traders taking advantage of the dip to 82 to lock in profits on dollar short positions.

☆ India cenbank's FX intervention via forwards may hamper rupee's defence -analysts
▼ + stars: | 2022-10-17 | by ( Nimesh Vora | ) www.reuters.com time to read: +2 min

MUMBAI, Oct 17 (Reuters) - The Reserve Bank of India's (RBI) forex intervention through forward dollar sales instead of an on-spot basis may undermine its effort to boost the rupee, analysts said. The central bank has been selling dollars in spot and conducting buy/sell swaps to shift the delivery of dollars to a future date. Register now for FREE unlimited access to Reuters.com RegisterA buy/sell swap involves an agreement to buy dollars at the spot date and to sell dollars at a future predetermined rate. The difference between the sell rate and the buy rate is the forward premium. Meanwhile, the fall in premiums also dissuades exporters to sell dollar forward.

☆ India should pause rate hikes as growth fears loom - MPC's Varma
▼ + stars: | 2022-10-17 | by ( Swati Bhat | ) www.reuters.com time to read: +4 min

MUMBAI, Oct 17 (Reuters) - India's central bank should pause interest rate hikes, despite unacceptably high inflation, to avoid stalling a recovery in economic growth, monetary policy committee member Jayant Varma told Reuters on Monday. Varma, in his written MPC minutes, had said the country's economic growth outlook is "very fragile" and warned it could be "dangerous" to push the policy rate much higher. Varma said he would prefer the repo rate being held close to 6% for several quarters until inflation is stamped out. In his minutes, Varma had warned against using monetary policy to manage the fall in the currency, saying the external sector should be managed by other instruments. Further, raising the repo rate to ensure the interest rate differentials remain favourable for India was not a part of the MPC's mandate, particularly when there was lower risk of it causing imported inflation, he suggested.

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