you are here: HomeNewsOpinion

Moneycontrol Pro Panorama: Rupee gets Fed blues: A knee-jerk reaction?

In today’s edition of Moneycontrol Pro Panorama: Why rupee is turning pale, more vaccines on the way, Weekly Tactical, Coal India’s dividend tap, wealth creation makes its mark, corporate debt back in favour and much more

June 18, 2021 / 03:15 PM IST

Dear Reader,

The US Federal Reserve’s hawkish turn is still creating ripples across markets. The dollar index registered the sharpest two-day increase this year. Global stock indices are feeling the heat. At the time of writing, the Sensex was down nearly 300 points, or 0.6 percent, on course to close lower for the second day in a row.

But is this just a knee-jerk reaction or is there more to it?

A lot still depends on when the Fed would walk its talk. Even for its bond buying programme, chair Jerome Powell said they would “talking about talking about” scaling down its asset purchases. In essence, Fed officials will discuss when they will start talking about reducing purchases. It’s all in the hazy future.

In the meantime, the world could move on elsewhere – a fact that will be dictated by the course of the pandemic about all else.

Close

Take the case of India.  Our herd immunity tracker shows the pace of vaccination improving. Taking government numbers at face value, the medium-term prospects for vaccinating the entire adult population looks solid as well.

If this actually materialises, along with the rebound in activity, won’t that be more than enough to whet the appetite of foreign investors? That’s a point to ponder. It is a major factor in deciding the rupee’s direction as we argue here.

Do check out these investing insights from our research team:

Coal India: Higher dividend yield to protect stock downside
Weekly Tactical Pick – Suven Pharma
Midcap cement duo that deserve attention

GNA Axles — A niche player with a strong brand and healthy financials

What else are we reading today?

Why CESC trades at a discount to Torrent Power
Is passive investing a threat to the mutual fund industry?
Wealth creation beats the pandemic
Allocate more to make RoDTEP a success

Bond spreads collapse as investors rush into corporate debt (Republished from the FT)

Technical picks : NTPC, New India Assurance, Dixon and Hikal (These are published every trading day before markets open and can be read on the app)

Thank you for subscribing to Moneycontrol Pro. We would love to hear from you. Check out our offers page here for exclusive discounts on select brands and giveaways.

For any feedback on the product and suggestions please click here. We promise to read your responses although we might not be able to reply to each one individually.

Ravi Krishnan

Moneycontrol Pro
Ravi Krishnan is deputy executive editor at Moneycontrol

stay updated

Get Daily News on your Browser
Sections
ISO 27001 - BSI Assurance Mark