March has been a good month for equity & currency, backed by FPI inflows & weak dollar. Going forward, tariffs, Chinese markets, oil prices & corporate earnings may have a role to play.
Inclusion of Indian bonds on J.P. Morgan’s emerging markets index may lead to more foreign investment & lower borrowing cost. Dollar inflows could imply rupee appreciation & higher liquidity.
While bank credit looks healthy, there are signs of stress. Pvt investments show green shoots but merchandise exports are contracting. Foreign investors continue to find India attractive.
Overseas ownership of Indian govt & sovereign bonds has fallen to record lows. FPIs have utilised less than 25% of their investment limit in govt bonds & just 17% in corporate bonds.
A group of ministers is likely to meet on 4-5 March to decide whether the govt should go ahead with the IPO, as foreign portfolio investors could be key to its success.
Central Board of Direct Taxes Chairman P C Mody said the govt will soon issue a clarification on the increase in tax rate on foreign portfolio investors.
ED has accused Amtek promoter Arvind Dham of controlling web of nearly 500 shell companies operating as a layered structure, with up to 15 levels of indirect ownership, to divert funds.
Joint submarine patrol ‘covered more than 2,000 nautical miles’ and was joined by Russian support vessels. Beijing maintains exercise ‘not directed against any third party’.
From Munir’s point of view, a few bumps here and there is par for the course. He isn’t going to drive his dumper truck to its doom. He wants to use it as a weapon.
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