Indian currency Rupee at lowest in 19 years |
The Indian rupee went below 72 against the US dollar intraday as it fell to its lowest in 2019 amid consistent Foreign Institutional Investors outflow and weak equities. However, it was good for exporters like IT companies. If the fall continues then the market will have a reason to worry because that will result in more outflow of foreign funds. The effects were felt in the Indian markets which are in a bear grip and the situation is worsening as both benchmark indices fell more than 1.5 percent each on Thursday, while the fall was bigger in broader markets. The BSE Sensex plunged more than 600 points intraday, falling 587.44 points to close at 36472.93. The Nifty dropped 177.30 points to 10,741.40, dragged down by banking and financials, auto and metals stocks. Though the Securities and Exchange Board of India has done away with the broad-based eligibility criteria for foreign portfolio investors to simplify the registration process, but the regulator has to do more to bring back foreign investors who needs clarity over the FPI surcharge. Foreign institutional investors started pulling out after the budget proposed a higher tax surcharge. According to SEBI data, FPIs sold nearly Rs 17,000-crore worth of shares in July, and nearly Rs 10,000 crore so far in August.
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