Page 4 - Arvind Chari News Today

A relentless torrent of funds rushing into India’s markets may tip the central bank’s delicate balancing act in 2021. For most of this year, the Reserve Bank of India has capped currency gains as global investors poured around $50 billion into stocks and stakes in companies. This has boosted rupee liquidity in a banking system that’s already flush with cash from the RBI’s stimulus measures. There’s growing consensus among traders and fund managers that the mounting pressures -- par...

A relentless torrent of funds rushing into India’s markets may tip the central bank’s delicate balancing act in 2021. For most of this year, the Reserve Bank of India has capped currency gains as global investors poured around $50 billion into stocks and stakes in companies. This has boosted rupee liquidity in a banking system that’s already flush with cash from the RBI’s stimulus measures. There’s growing consensus among traders and fund managers that the mounting pressures – parti...

Synopsis A modest gain in the rupee over the past month could mean that policy makers are already dialing intervention down a touch, or that inflows are starting to get the better of them. ETAuto In India, capital inflows may reach $82 billion by the end of the fiscal year though March, then continue at much the same pace for the following 12 months, according to estimates from Deutsche Bank AG. By Subhadip Sircar and Anirban Nag A relentless torrent of funds rushing into India’s markets may ...

A modest gain in the rupee over the past month could mean that policy makers are already dialing intervention down a touch, or that inflows are starting to get the better of them. “We believe that the RBI is facing a tough task of liquidity management while juggling FX inflows, secondary bond market purchases to keep long-term borrowing costs low and ensuring money-market rates are aligned to the policy rate,” said Kanika Pasricha, an economist at Standard Chartered Plc in Mumbai. Steps mu...