Page 2 - Capital Flows News Today

At a time when overseas capital flows have been firm, foreign lenders have requested the banking regulator for flexibility in compliance with the central banks Large Exposures Framework (LEF), particularly in handling certain types of accounts that facilitate global transactions.

ZeroHedge - On a long enough timeline, the survival rate for everyone drops to zero

Japanese investors trumped buyers from North America, Hong Kong and Singapore to be the most active offshore capital in Australia’s property sector last year, new CBRE data shows.

Rumki Majumdar, Director, Deloitte India, expects no major announcements in the Interim Budget 2024 due to it being an election year. The focus will be on maintaining fiscal discipline, improving capital flows, and navigating global uncertainties. The government may prioritize spending on infrastructure, education, and healthcare to build human capital and control inflation. Adhering to fiscal discipline will instill confidence in investors to invest in India.

Global spillovers in 2024 can create volatility but the runaway depreciation of the Rupee may not happen as narrowing deficit have made the currency resilient. The Reserve Bank is also equipped with a strong armoury of foreign exchange reserves of over $ 600 billion to defend the rupee compared to $292 billion in 2012-13 adding to the market perception that RBi is being extra vigilant.

In the face of global financial market turbulence, Indias rupee appears more resilient due to a narrowed current account deficit (CAD) and bolstered forex reserves. Increased exports post-pandemic buffered the CAD, keeping it manageable at 2% in FY23 despite soaring commodity prices. Forex reserves, standing at over $600 billion, fortify the RBIs ability to stabilize the rupee, marking a significant contrast to a decade ago when India was tagged among the Fragile Five economies. Forecasts projec...

But after partying hard in the last couple of months, fatigue among bulls is likely to be seen entering into the New Year, shows various data indicators.

Niket Shah says: "2024 could be a year of lower returns as compared to 2023. This is because some of the tailwinds which caused this years outperformance (lower oil prices, easy domestic liquidity, certainty on political front) are likely to be missing next year. Nonetheless, given that we should see lower interest rates next year it should result in 8-10% returns for 2024 which will be lower than 2023."

Madanagopal Ramu says: "In the long-term, investing in selective quality mid and small caps which fall in the emerging sectors or segments of the economy are always the best way to generate alpha. Investing in selective mid and small businesses operating in sectors which contribute India growth story and manage to generate sufficient spread in the business are better way to invest in the mid and smallcap segment."

Sumit Agrawal says: "After a long time, we are seeing an uptick in capex, capabilities build up and good visibility on industrial growth. Continued traction in government capex, with some pick up in the private sector as well, along with a consumption pick up sometime in the middle of next year would lead to continued growth surprises in 2024. I remain quite optimistic for India in 2024."