Indian Stock Market News, Equity Market and Sensex Today in India | Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Fitch upgrades Indian rupee
Tue, 15 Jun Pre-Open

That India reaped a windfall from the recently concluded telecom auctions is now old hat. It is time for the repercussions to be felt. We mean positive of course. And the first positive fallout is already here. Fitch Ratings yesterday revised outlook on India's long term local currency to stable from negative. And it is the revenues from the telecom spectrum auctions that have made all the difference here. The ratings agency now predicts the public debt to GDP ratio to come in at 80% in FY11. This is a good 3% improvement from the levels envisaged earlier and has been attributed to buoyant one-off revenues from the 3G license and broadband spectrum auctions. What is more, the agency has also revised India's GDP growth projections for the current fiscal upwards to 8.5%.

Fitch has also sounded some words of caution. Especially on the long term deficit reduction plan. It continued to believe that India's track record in medium term fiscal deficit reduction is not very encouraging and this could put downward pressure on ratings if not looked into. It also remains concerned on the inflation front and adds that an intensified inflation shock would be negative for India's ratings.

Thus, while the improvement in India's ratings is indeed heartening, it should be noted that the biggest reason behind the improvement has a one-off feel to it and unless India undertakes large scale structural reforms, its ratings may quickly spiral downwards yet again.

You can lose money in bonds too

Sample this. Between 1985 and 2009, a period stretching as much as 25 years, returns in bond fund have fallen in only three years in the US! Indeed, with interest rates on a secular decline since the 1980s, people didn't have to rely too much on investment skills to make money in bonds. They just happened to be at the right place and at the right time.

But as per Moneynews, all that could change soon. With the US Federal Reserve unlikely to keep interest rates near zero for long and with the debt problem threatening to stoke inflationary fires, bond prices could well be headed downwards for quite some time to come. Thus, it could well turn out that the theory that has been in existence for almost a quarter of a century will be put to its sternest test yet. In other words, one could end up losing money in bonds as well.

For information on how to pick stocks that have the potential to deliver big returns, download our special report now!

Read the latest Market Commentary


What else is happening in the markets today? Dig in...

Equitymaster requests your view! Post a comment on "Fitch upgrades Indian rupee". Click here!

  

Stock Market Updates

MRPL at 52 Week High; BSE 500 Index Up 2.0% (Today's Market)

Mar 1, 2021 03:34 PM

MRPL share price has hit a 52-week high. It is presently trading at Rs 45. BSE 500 Index is up by 1.7% at 19,713. Within the BSE 500, MRPL (up 8.3%) and RCF (up 20.0%) are among the top gainers, while top losers are HIMADRI SPECIALITY CHEMICAL and BHARTI AIRTEL.

KEC INTERNATIONAL Share Price Up by 5%; BSE CAPITAL GOODS Index Up 1.6% (Today's Market)

Mar 1, 2021 03:26 PM

KEC INTERNATIONAL share price is trading up by 5% and its current market price is Rs 454. The BSE CAPITAL GOODS is up by 1.6%. The top gainers in the BSE CAPITAL GOODS Index are KEC INTERNATIONAL (up 5.2%) and BHARAT ELECTRONICS (up 6.5%). The top losers are SCHAEFFLER INDIA (down 0.2%) and HINDUSTAN AERO. (down 0.3%).

GUJARAT ALKALIES Share Price Up by 10%; BSE 500 Index Up 1.6% (Today's Market)

Mar 1, 2021 03:24 PM

GUJARAT ALKALIES share price is trading up by 10% and its current market price is Rs 346. The BSE 500 is up by 1.6%. The top gainers in the BSE 500 Index are GUJARAT ALKALIES (up 10.2%) and DEEPAK NITRITE (up 14.5%). The top losers are COLGATE and HDFC AMC .

DEEPAK NITRITE Share Price Up by 13%; BSE 500 Index Up 1.4% (Today's Market)

Mar 1, 2021 03:10 PM

DEEPAK NITRITE share price is trading up by 13% and its current market price is Rs 1,553. The BSE 500 is up by 1.4%. The top gainers in the BSE 500 Index are DEEPAK NITRITE (up 12.8%) and JUST DIAL (up 14.2%). The top losers are BAJAJ HOLDINGS & INVESTMENT and CADILA HEALTHCARE .

HIMADRI SPECIALITY CHEMICAL Share Price Down by 11%; BSE 500 Index Up 1.4% (Today's Market)

Mar 1, 2021 03:08 PM

HIMADRI SPECIALITY CHEMICAL share price is trading down by 11% and its current market price is Rs 55. The BSE 500 is up by 1.4%. The top gainers in the BSE 500 Index are RCF (up 20.0%) and MMTC (up 20.0%). The top losers is HIMADRI SPECIALITY CHEMICAL (down 11.3%).

Sensex Trades Over 300 Points Higher; Dow Futures Up by 204 Points (Today's Market)

Mar 1, 2021 12:30 pm

BSE Sensex is trading up by 378 points, while the NSE Nifty is trading up by 165 points.

View More Indian Share Market News

Most Popular

It's the Beginning of a New Bull Phase in Smallcaps(Profit Hunter)

Feb 24, 2021

Last time the smallcap index crossed 19k a big correction followed. Here's what makes it different this time.

Top 5 Stocks Mutual Funds Bought and Sold in January 2021(Sector Info)

Feb 16, 2021

A look at what India's top equity mutual funds bought and sold in January 2021.

I Would Recommend this Small-cap Stock Over Tesla(Profit Hunter)

Feb 16, 2021

Do you enjoy reading Tesla and Bitcoin stories? Here's a not so famous small-cap stock to profit from the rise of EVs.

Make Rs 5,000 Per Day Trading the Market(Fast Profits Daily)

Feb 25, 2021

In this video, I'll show you how to get started on the path to daily trading profits.

More

India's #1 Trader
Reveals His Secrets

Secret To Increasing Your Trading Profits Today
Get this Special Report,
The Secret to Increasing Your Trading Profits Today, Now!
We will never sell or rent your email id.
Please read our Terms

S&P BSE SENSEX


Mar 1, 2021 (Close)

MARKET STATS