Indian equity indices ended Wednesday in negative territory, possibly due to the rupee's weakness against the US dollar, Foreign Institutional Investor (FII) outflows, and ongoing trade uncertainties.
India's Chief Economic Advisor V Anantha Nageswaran on Wednesday, downplayed concerns over the rupee weakening past 90 against the US dollar, asserting that the currency's movement remains within manageable limits and has not created macroeconomic stress.
The Indian rupee's recent depreciation against the dollar is temporary and will reverse once India concludes a trade agreement with the United States, according to Anant Goenka, Vice Chairman of RPG Group and President of the Federation of Indian Chambers of Commerce and Industry (FICCI).
As the rupee weakens toward Rs 90 per dollar, Uday Kotak has urged Indian businesses to break out of their comfort zone, warning that foreign investors appear to be calling the shots in current market dynamics.
Indian rupee breached the 90 mark against USD on Wednesday morning, extending its depreciation run through sessions now, and in the process hitting a fresh all-time low for the Indian currency.
The domestic benchmark indices witnessed selling pressure on Wednesday's opening trade as the weakening Rupee and cautious investor sentiment weighed on the markets.
The Indian economy is expected to grow at 7 per cent in the current fiscal 2025-26, and subsequently moderate to 6.7 per cent in the next, Dharmakirti Joshi, Chief Economist, CRISIL Limited, told ANI in an exclusive interview.
The domestic share market opened on a weak note on Tuesday as both the benchmark indices slipped into negative territory, weighed down by a falling rupee and continued foreign portfolio investor (FPI) outflows.
While suggesting that the party is using the "hard-earned taxes" of Malayalees as the Communist Party of India (Marxist)'s party fund, he said that just like the Sabarimala alleged gold loot, this too has to be investigated thoroughly.
The downside in the Indian rupee, which has been steadily depreciating over the past months, is unlikely to abate soon as it hit yet another record low on Monday.
India's foreign exchange reserves declined by USD 4.472 billion in the week that ended November 21 to USD 688.104 billion, driven by a slump in both foreign currency assets and gold reserves, the Reserve Bank of India's latest 'Weekly Statistical Supplement' data showed.