Economy

Factors underpinning rupee depreciation part of Baa3 rating: Moody’s

Factors underpinning rupee depreciation part of Baa3 rating: Moody’s

The various factors that underpin depreciation in the rupee's value against the dollar are part of the country's Baa3 sovereign rating, Atsi Sheth, an analyst with Moody's Investors Service said.

Sheth said Moody's rating of Baa3 for India includes macro-economic challenges of weaker economic growth, the twin deficits, as well as falling value of rupee.

In an e-mailed, the New York-based analyst said, "So while (the) rupee depreciation may be a new development, the factors that underpin it are not, and have been incorporated into India's Baa3 rating."

NSEL ordered to appoint a forensic auditor firm within 7 days

NSEL ordered to appoint a forensic auditor firm within 7 days

The Forward Markets Commission (FMC) has questioned the credibility of the management and promoters of the beleaguered National Spot Exchange Ltd (NSEL), and ordered the exchange to appoint a reputed forensic auditor firm to determine the credibility of its books of accounts.

The FTIL-run NSEL was ordered to appoint a forensic auditor firm of repute within seven days. The auditor firm will authenticate the exchange's claims about its stocks of commodities in warehouses.

Onion prices hit record highs in metropolitan areas

Onion prices hit record highs in metropolitan areas

Squeezed supply has pushed onion prices to unprecedented highs in metropolitan areas like Delhi and Mumbai.

The average retail price of onion in Mumbai jumped to Rs 65 per kilogram on Monday, which shows a big increase from Rs 20 per kilogram just a couple of months back.

In Delhi, average retail price of onion reached an unprecedented height of around Rs 80 per kilogram.

Govt. all set to announce steps to tackle Rupee fall and high CAD

Govt. all set to announce steps to tackle Rupee fall and high CAD

The government is expected to announce a slew of measures to stabilize volatile domestic currency and arrest the problem of high current account deficit (CAD).

The measures, which can be announced as soon as Monday, August 12, will reportedly include hiking of duties on non-essential imports and easing of norms for raising overseas funds by corporate sector. These steps will provide strength to rupee and help in bringing CAD down.

A government source said, "Some measures are in the offing." The source added that the government's focus is on encouraging foreign inflows.

Indian Parliament passes Companies Bill

Indian Parliament passes Companies Bill

Indian Parliament on Thursday passed the new Companies Bill that aims to strengthen accounting standards, corporate social responsibility (CSR), and shareholder rights.

The new Companies Bill is the first major revamp of company law in more than five decades. The first Companies Act was passed nearly 57 years ago.

FM urges state-owned lenders to cut interest rates

FM urges state-owned lenders to cut interest rates

As part of his efforts to stimulate consumer demand and provide a much-needed boost to the sluggish economy, Union Finance Minister P Chidambaram on Wednesday urged state-owned lenders to lend money at lower interest rates.

Mr. Chidambaram has long been pushing banks to lower their lending rates, but most banks kept their rates almost stable in order to attract more deposits.

Rupee’s fall hits middle and lower classes the hardest: Assocham

Rupee’s fall hits middle and lower classes the hardest: Assocham

The drastic fall in the value of Indian rupee against the US dollar has hit the country’s middle class and lower class the worst, a fresh survey by Assocham revealed.

The Indian currency slipped to its record low of 59.93 against the US dollar on Thursday, June 20, following the US Federal Reserve’s indication that it would soon put an end to its monetary stimulus that launched in wake of the global economic crisis to support the struggling economy. Ending of the monetary stimulus would further strengthen the American currency.

Rupee slips by further 13 paise against US dollar in early trade

Rupee slips by further 13 paise against US dollar in early trade

The Indian rupee continued its steep decline in early trade on Friday as strong demand for the US dollar remained persistent.

The rupee slipped further by 13 paise to trade at Rs 59.70 against the US dollar at 9.03 a. m. on Friday.

At one point on Thursday, the Indian currency slipped to its all-time low of 59.93, forcing the Reserve Bank of Indian (RBI) to intervene to support the local currency.

Panel recommends hiking of FDI cap to 100% in sectors like telecom, aviation

Panel recommends hiking of FDI cap to 100% in sectors like telecom, aviation

A high-level committee headed by economic affairs secretary Arvind Mayaram has recommended hiking of foreign direct investment (FDI) cap to 74 per cent in multi-brand retail and to 100 per cent in telecom and aviation sectors.

The panel also recommended allowing full foreign ownership in internet service providers (ISPs), cable networks, mobile television, teleports private security agencies, satellite, ground handling operations, and direct-to-home (DTH) services.

Steep rise in gold imports pushes India’s trade deficit to 7-month high

Steep rise in gold imports pushes India’s trade deficit to 7-month high

India’s trade deficit jumped to a 7-month high of more than $20 billion in May as gold and silver imports surged nearly 90 per cent year-on-year in the month, provisional data revealed on Monday.

The steep rise in gold and silver imports pushed the country’s trade deficit to $20.14 billion in May, from $17.8 billion in April. The annual rate of gold imports increase in May was however slower than the 138 per cent rise in April.