INR (Indian Rupee) has been depreciating from last 2 quarters, from 46 to 54 level IT sector was enjoying this gain, but Oil and Gas companies were suffering and were unable to pass the extra cost to consumers. This move was a negative for growth of economy as well as certain sectors and companies, we saw industrial production (IIP) hitting its lowest level since 2008. Many sectors saw ... [Continue Reading]
How is Rupee Responsible for Stock Market Crash, Nifty also Down
Indian rupee has depreciated about 18% in last 6 month, causing a large group of importers to suffer cost pressure. Most of these companies were unable to pass this cost to consumers, resulting in loss. As India is oil importing country, we spend large chunk of our foreign reserve in oil imports. Increasing import price of oil causing higher inflation and RBI is in mood to beat inflation rather ... [Continue Reading]
How strong growth in US is bad for Nifty Future
US economy was growing with its fastest pace since 2008, we have seen Dow Jones Industrial Average and S&P500 index making fresh 52week high. This good news is not really good for India, as we see US Dollar was gaining strength across all other currencies. This impact was seen in Indian rupee INR, due to strong US dollar there was weakness in Indian rupee. Weakness was a bigger one as we saw, ... [Continue Reading]
How FII’s are losing more than Domestic investors, Nifty future made new low today
Panic selling is coming from FII as they are losing more than domestic investors, if this continues we will see more downside from current levels. Most of the FII track their asset in terms of USD and strength is USD across globe is creating extreme pressure in our economy, FII are now liquidating their positions and buying USD to take the advantage of strong USD. If you compare nifty future with ... [Continue Reading]