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☆ Rupee eyes RBI policy decision, weighs Powell's comments
▼ + stars: | 2023-02-08 | by ( Nimesh Vora | ) www.reuters.com time to read: +2 min

MUMBAI, Feb 8 (Reuters) - The Indian rupee is likely to open little changed to the U.S. dollar on Wednesday, with traders weighing comments from Federal Reserve Chair Jerome Powell and awaiting the Reserve Bank of India's policy decision. The non-deliverable forwards indicate an opening of 82.68-82.74 for the rupee , compared with 82.70 in the previous session. We doubt RBI will have a major impact on the rupee, a trader at a Mumbai based bank said. Some market participants had expected Powell to adopt a more hawkish stance after the jobs report blew past expectations. Powell was "not materially more hawkish" than he was after the recent Fed decision, ING Bank said in a note.

Fed Chair Jerome Powell has spoken and luckily for bulls and bears, there was something for everyone, so where Asian markets go on Wednesday is something a coin flip. With an expected interest rate rise in India taking center stage regionally, investors in Asia will be digesting the mixed U.S. picture that saw stocks rise but the dollar and Treasuries ease lower on Tuesday. But he also said "it will take some time" to get the inflation genie back in the 2% bottle. The Reserve Bank of India is likely to raise its key interest rate by 25 basis points to 6.50%, which most economists reckon will be the last of the hiking cycle. With the rupee within a whisker of October's record low, however, traders will be on RBI intervention alert.

BENGALURU, Feb 7 (Reuters) - The Indian rupee, one of the worst-performing Asian currencies last year, is forecast to strengthen very little in coming months and still trade above the 80 per dollar mark a year from now, a Reuters poll of foreign exchange strategists found. The risk, however, is if U.S. inflation does not fall as much as markets are hoping it does in coming months. Even if it's marginally higher than what the market is currently expecting ... that could lead to a brief dollar rally and pressure the rupee." The latest Reuters poll of 43 foreign exchange analysts, taken after the Feb. 1 budget, showed the rupee strengthening just over 1% to 81.75 per dollar in the next six months. (For other stories from the February Reuters foreign exchange poll:)Reporting by Devayani Sathyan and Anant Chandak; Polling by Madhumita Gokhale and Veronica Khongwir; Editing by Hari Kishan, Ross FinleyOur Standards: The Thomson Reuters Trust Principles.

☆ Indian banks' exposure to Adani group "insufficient" to pose credit risk - Fitch
▼ + stars: | 2023-02-07 | by ( ) www.reuters.com time to read: +3 min

MUMBAI, Feb 7 (Reuters) - The exposure of Indian banks to the embattled Adani Group is "insufficient in itself" to present a substantial risk to the credit profiles of these lenders, Fitch Ratings said in a note on Tuesday. Fitch estimated that loans to all Adani group entities generally account for 0.8%-1.2% of total lending for Indian banks rated by the agency, equivalent to 7%-13% of total equity. SBI's total exposure was 0.9% of its total loan book, or around 270 billion rupees, Chairman Dinesh Kumar Khara has said. Additionally, most of the bank's exposure to the Adani Group was secured by completed and cash-generating assets while the rest of the exposure was to on-schedule, under-construction projects, said CreditSights. Fitch, however, cautioned that Indian state banks could face pressure to provide refinancing for Adani entities if foreign banks scale back their exposure or investor appetite for the group's debt weakens in global markets.

☆ Indian shares set for muted start on rate fears, Adani uncertainty
▼ + stars: | 2023-02-06 | by ( ) www.reuters.com time to read: +2 min

Analysts said that the selloff in Adani stocks has created panic in Indian markets. Ratings agency Moody's warned that the tumble in Adani group stocks could hit the conglomerate's ability to raise capital. STOCKS TO WATCHState Bank of India (SBI.NS): India's largest lender reports a rise in net profit in the third quarter. read moreITC (ITC.NS): Co reports a higher-than-expected rise in net profit in December-quarter on strong cigarette sales and steady demand for packaged foods. read moreMarico (MRCO.NS): Co reports higher-than-expected rise in net profit in Q3 on higher demand for cooking products and hair oil.

☆ Adani crisis: Billionaire scrambles to reassure creditors as market rout enters third week
▼ + stars: | 2023-02-06 | by ( Diksha Madhok | ) edition.cnn.com time to read: +6 min

The loans were backed by shares in Adani Ports, Adani Green Energy and Adani Transmission, which have collapsed in value. While the Adani Group has vehemently denied the allegation made by Hindenburg Resarch as “baseless” and “malicious,” investors remain unconvinced. Adani companies will be reporting quarterly results this week. Moody’s said Friday that the plunge in the shares of Adani companies was likely to reduce the group’s ability to raise capital. Another agency, S&P, cut the outlook for its ratings on two companies, Adani Ports and Adani Electricity, to negative from stable, citing the risk of higher funding costs or reduced access to capital.

☆ Adani rout deepens despite soothing words from India's government and billionaires
▼ + stars: | 2023-02-06 | by ( Jihye Lee | ) www.cnbc.com time to read: +4 min

Indranil Mukherjee | Afp | Getty ImagesShares of most Adani Group companies fell further on Monday, continuing to drop as a feud between the conglomerate and short-seller firm Hindenburg deepened. Adani Green Energy , Adani Power and Adani Total Gas fell 5% each. The Sensex is the benchmark index of the BSE — formerly the Bombay Stock Exchange — and the Nifty 50 is the flagship index of the National Stock Exchange of India. Gautam Adani, chairman of Adani Group, speaks during the Forbes CEO Summit in Singapore, on Tuesday, Sept. 27, 2022. Adani Power is included on the long-term list, while Adani Enterprises, Adani Green Energy, Adani Ports and Special Economic Zone, Adani Transmission and Adani Total Gas are on the short-term list.

☆ Gautam Adani lost half his wealth in a flash. Here’s what happened
▼ + stars: | 2023-02-04 | by ( Julia Horowitz | ) edition.cnn.com time to read: +6 min

While the Adani Group has condemned the report as “baseless” and “malicious,” investor questions about its claims linger, and the fallout is growing. Gautam Adani is a 60-year-old tycoon who founded the Adani Group more than 30 years ago. The firm said it had taken a short position in Adani Group companies, meaning it would benefit from a drop in their value. Stocks of most Adani Group companies slumped again on Friday. Indian banks that hold Adani Group assets could also be affected if the value of those holdings continues to drop.

☆ Take Five: The Bottom Line
▼ + stars: | 2023-02-03 | by ( ) www.reuters.com time to read: +5 min

Australia and India's central banks are navigating the shifting sands of data and markets are digesting what the world's top central banks have to offer. The question is what impact this will have on bonds and stocks markets after a stellar January? Reuters Graphics4/ RUN RALLY, RUNIt was a stellar start to 2023 for markets - stocks and government bonds enjoyed one of the best Januaries on record, fuelled by optimism that the worst is over. That's not good for a central bank, nor is the idea that their communication is ineffective. Policy rate hikes and cuts by central banks overseeing the 10 most traded currencies.

☆ Indian shares set to rise on easing inflation concerns; Adani stocks in focus
▼ + stars: | 2023-02-03 | by ( ) www.reuters.com time to read: +2 min

BENGALURU, Feb 3 (Reuters) - Indian shares are set to open higher on Friday, as global central banks hinted at inflation easing, spurring optimism that the rate hike cycle may be near an end, while the ongoing rout in Adani group stock could cap gains. After the U.S. Federal Reserve acknowledged in its monetary policy decision on Wednesday that the disinflationary process may have begun, the European Central Bank and the Bank of England followed suit on Thursday. Analysts said that the selloff in Adani stocks has created panic in Indian markets. Foreign institutional investors sold 30.64 bln rupees ($373.23 million) worth of shares on a net basis on Thursday while domestic institutional investors purchased 23.71 bln rupees worth of shares, official data showed. ($1 = 82.0940 Indian rupees)Reporting by Bharath Rajeswaran in Bengaluru; Editing by Janane VenkatramanOur Standards: The Thomson Reuters Trust Principles.

☆ India cenbank asks country's banks for details of exposure to Adani group - sources
▼ + stars: | 2023-02-02 | by ( ) www.reuters.com time to read: 1 min

NEW DELHI/MUMBAI, Feb 2 (Reuters) - India's central bank has asked local banks for details of their exposure to the Adani group of companies, government and banking sources said on Thursday. The Reserve Bank of India did not immediately respond to a request for comment. The sources were speaking to Reuters and declined to be named because they were not authorised to speak to the media. Shares in Adani group of companies plunged on Thursday after the tycoon Gautam Adani-led conglomerate shelved a $2.5 billion share sale amid a turbulent market, citing the need to insulate investors from potential losses. Reporting by Aftab Ahmed and Nupur Anand, writing by Sudipto Ganguly; editing by Miral FahmyOur Standards: The Thomson Reuters Trust Principles.

India's finance minister will present the annual budget to parliament on Wednesday. Bloomberg | Getty ImagesIndia's finance minister will present the annual budget to parliament on Wednesday. Finance Minister Nirmala Sitharaman will announce the final full-year budget before the next general elections in 2024. Analysts expect the government to focus on continued fiscal consolidation for this year's budget, despite challenges. Nirmala Sitharaman, India's finance minister, speaks during a news conference at the National Media Center in New Delhi, India, on Monday, Nov. 15, 2021.

☆ RBI to hike repo rate by 25 bps in Feb, ending tightening cycle: Reuters poll
▼ + stars: | 2023-01-30 | by ( Devayani Sathyan | ) www.reuters.com time to read: +2 min

Like many other major central banks, the RBI is expected to then pause, waiting for inflation to fall before considering a shift toward a stimulative stance as Asia's third-largest economy slows. More than three-quarters of economists, 40 of 52, expected the RBI to raise its key repo rate (INREPO=ECI) by 25 basis points to 6.50%, according to a Jan. 13-27 Reuters poll. "They (the RBI) need to pause at some point to see what exactly is the impact of the previous monetary tightening overall on growth and inflation. That is why I believe it is not premature for them to pause after 6.50%," said Upasna Bhardwaj, chief economist at Kotak Mahindra Bank. A deteriorating global economic outlook also suggests downgrades to India's outlook are likely in coming months.

☆ Indian shares set to rise after a rout set off by Adani stocks
▼ + stars: | 2023-01-30 | by ( ) www.reuters.com time to read: +2 min

Besides the Fed's policy meeting, investors await rate decisions from other global central banks such as the European Central Bank and the Bank of England, later this week. STOCKS TO WATCH** Bajaj Finance (BJFN.NS): Co posts bigger-than-expected rise in consolidated net profit in third quarter, aided by a fall in provisions for bad loans. read more** Vedanta (VDAN.NS): Co reports slide in consolidated net profit in Q3, dragged by soft metal prices. read more** Tata Elxsi : Co reports arise in consolidated net profit in third quarter. ($1 = 81.5100 Indian rupees)Reporting by Bharath Rajeswaran in Bengaluru; Editing by Dhanya Ann ThoppilOur Standards: The Thomson Reuters Trust Principles.

MUMBAI, Jan 27 (Reuters) - Some of India's leading public sector banks said on Friday their exposure to the Adani Group was within the limits prescribed by the central bank, assuaging fears of default risks from their exposure to the conglomerate. Public sector banks in India have in the past been hit by massive corporate defaults. The board will take any decision on the bank's exposure to the group only after that, the official said. The Adani Group comprises the flagship Adani Enterprises Ltd (ADEL.NS), as well as Adani Ports and Special Economic Zone Ltd (APSE.NS), Adani Power Ltd (ADAN.NS), Adani Green Energy Ltd (ADNA.NS) and Adani Transmission Ltd (ADAI.NS). For public sector banks, the debt is at 0.7% of total loans and for private banks, it is at 0.3%.

☆ India's FY24 gross borrowing could be less than expected -economists
▼ + stars: | 2023-01-25 | by ( Reuters Staff | ) www.reuters.com time to read: +3 min

MUMBAI (Reuters) - India’s central government’s gross market borrowings for 2023/24 could come in below market expectations as a pool of securities raised to compensate states for a shortfall in goods and services tax may not be rolled over, a few economists said. The government’s gross borrowing is expected to be a record 16 trillion rupees (about $196 billion) for the fiscal year through March 2024, according to a Reuters poll of economists. Once we knock these off, the ‘true’ gross borrowing comes to 15.8 trillion rupees,” the economists estimated. India borrowed 1.1 trillion rupees and 1.59 trillion rupees in 2020-21 and 2021-22, respectively, to lend to states and compensate for a revenue shortfall from tax collections. After adjusting for the redemption of such bonds in 2022-23, IDFC First Bank expects gross borrowing of 15.50 trillion rupees.

☆ India's first green bond issue pulls local bidders, foreigners aloof - traders
▼ + stars: | 2023-01-25 | by ( Dharamraj Lalit Dhutia | ) www.reuters.com time to read: +2 min

MUMBAI, Jan 25 (Reuters) - India's first sovereign green bond issue was mostly subscribed by local banks and insurance companies, with limited interest from foreign investors, market participants said. New Delhi raised 80 billion rupees ($981.31 million) via green bonds on Wednesday. The five-year 7.38% 2027 bond yield was at 7.15%, while the benchmark 7.26% 2032 bond yield was at 7.35% during the time of bidding. Local banks and mutual funds do not have a specific mandate to invest in green bonds and treat these at par with other sovereign bonds. Ahead of Wednesday's auction, the government had met foreign investors to gauge the demand, Reuters had reported.

The government plans to raise 160 billion rupees through green bonds for the current fiscal ending March 31, with the first tranche of 80 billion rupees scheduled for auction on Wednesday. "The expectation of a green premium is in line with 'greenium' that issuers have got globally," said one of the two sources. "Green bonds should command a premium because of the mandates to invest in these securities. The RBI will auction 40 billion rupees each of five-year and 10-year green bonds. "It will be advisable to appoint an external auditor with an oversight by CAG (Comptroller and Auditor General) for utilisation of green bond proceeds."

☆ India's cenbank likely buying dollar after rupee rose above 81/USD - traders
▼ + stars: | 2023-01-23 | by ( ) www.reuters.com time to read: 1 min

MUMBAI, Jan 23 (Reuters) - India's central bank likely bought dollars via state-run banks to prevent the rupee from appreciating significantly above the 81 psychological level, three traders told Reuters. The rupee was last quoted at 81.125 per U.S. dollar after climbing to 80.89 in early trade. The rupee rose above the 81 level for the first time since Dec. 1. The sizeable dollar buying from public sector banks after the open point to the Reserve Bank of India, a trader at a private sector bank said, adding importers too are very likely active. Reporting by Nimesh Vora; Editing by Eileen SorengOur Standards: The Thomson Reuters Trust Principles.

MUMBAI, Jan 23 (Reuters) - The Indian rupee is expected to extend its gains this week, while government bond yields may move marginally higher due to worries about yet another year of elevated borrowing. The local unit is likely to add to its momentum and trade in a broad 80.50-81.50 range this week, analysts said. Despite the corporate flows in the market, steady foreign investment into equities is more important, so it seems appropriate for the rupee to trade around those levels, Biswas added. Market participants expect the benchmark bond yield to trade in the 7.30%-7.40% band this week. The Reserve Bank of India will auction 40 billion rupees each of five- and 10-year green bonds on Wednesday.

☆ India's Yes Bank reports surprise 80% plunge in quarterly profit
▼ + stars: | 2023-01-21 | by ( ) www.reuters.com time to read: +1 min

MUMBAI, Jan 21 (Reuters) - India's Yes Bank (YESB.NS) reported a surprise 80% plunge in quarterly profit on Saturday as provisions for bad loans increased. Net profit fell to 515.20 million rupees ($6.36 million) for the three months through December from 2.66 billion rupees in the same period a year earlier. Provisions increased to 8.44 billion rupees from 5.82 billion rupees the previous quarter. Yes Bank in December completed the transfer of bad loans worth 480 billion rupees to private equity firm J.C. Bank loans rose nearly 15% in the fortnight to Dec. 30 from a year earlier, outpacing a 9.2% increase in deposits, according to the latest data from the Reserve Bank of India.

☆ India's Kotak Mahindra Bank's Oct-Dec net profit jumps 31%
▼ + stars: | 2023-01-21 | by ( ) www.reuters.com time to read: +2 min

MUMBAI, Jan 21(Reuters) - India's Kotak Mahindra Bank (KTKM.NS) on Saturday reported a 31% increase in standalone net profit for the October-December quarter, aided by a strong topline and healthy loan growth. The private lender's standalone profit stood at 27.92 billion rupees ($344.2 million) compared with 21.31 billion rupees in the same period last year. Net interest income, the difference between interest earned and interest expended, rose 30.4% from a year ago to 56.53 billion rupees, while other income rose nearly 54%. The net interest margin was at 5.47% as compared to 4.62% last year. As of Dec. 31, the bank held Covid-related provisions worth four billion rupees.

☆ Davos 2023: Key takeaways from the World Economic Forum
▼ + stars: | 2023-01-20 | by ( ) www.reuters.com time to read: +6 min

[1/4] NATO Secretary General Jens Stoltenberg, Poland's President Andrzej Duda and Canada's Deputy Prime Minister and Minister of Finance Chrystia Freeland take part in the World Economic Forum session on "Restoring Security and Peace. REUTERS/Arnd WiegmannDAVOS, Switzerland, Jan 20 (Reuters) - Global leaders and business executives departed a freezing World Economic Forum (WEF) meeting on Friday after a frank exchange of views over how the world will tackle its biggest issues in 2023. Here's what we learned:ECONOMY: Gloom and doom heading into Davos turned into cautious optimism by the end with the global economic outlook for the year ahead looking better than feared. On the inside, political leaders like Kier Starmer railed against new oil investments and Pakistani climate minister Sherry Rehman pushed for loss and damage funding. The lesson I have learned in the last years ... is money, money, money, money, money, money, money."

☆ India's foreign exchange reserves rise to 5-month high
▼ + stars: | 2023-01-20 | by ( ) www.reuters.com time to read: +1 min

MUMBAI, Jan 20 (Reuters) - India's foreign exchange reserves (INFXR=ECI) rose to $572 billion in the week through Jan. 13, their highest level since early August last year, the Reserve Bank of India's (RBI) statistical supplement showed on Friday. That is higher than the country's reserves of $561.58 billion for the week ended Jan. 6, and the more-than-two-year low of $524.52 billion hit in October 2022. The central bank has, in the past, said that changes in reserves also stem from valuation gains or losses. The rupee marked its best trading week in two months in the week ended Jan. 13 as it appreciated sharply on breaking out of a tight range. It continued to gain, albeit at a slower pace, in the current week ending Jan. 20.

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