By announcing a massive bond purchase programme, the G-SAP, the RBI assures infusion of enough liquidity (a swap of bonds for reserves) into the system before it will be drained out when it auctions new government bonds (a swap of reserves for bonds), thereby maintaining money markets rates within the target range
The expectation is that ECB in today's meeting is likely to unveil bond buying programme to the tune of 50 billion euros per month. But the move will not start a rally in Europe. Instead emerging economies undergoing reforms will see good amount of gains from the QE money.
Dipan Mehta, Member, BSE and NSE says Indian export-oriented companies are seeing a lot of FII interest. He says these companies are benefiting from the weak currency, better trends overseas in terms of the economy and other such reasons.
CNBC-TV18's Nigel D'Souza gives a market wrap of January 30.
Investors are on tenterhooks over when the Fed will start to reduce its USD 85 billion-a-month bond-buying programme, a major driver of global risk assets in recent years.
JPMorgan AMC expects the rally in the market to continue till the year-end. It feels that on pricing in the currency depreciation, the Indian market still looks attractive.
Overseas investors have pumped in over Rs 13,000 crore (USD 2 billion) in the Indian stock market this month following new RBI Governor Raghuram Rajan's announcing measures to boost the weakening rupee and reviving economic growth.
A top US central bank official said that the amount of tapering its monthly bond buying programme will not matter much.
The Fed will probably indicate the first move of at least USD 10 billion of reduction in bond buying. Three months ago when Ben Bernanke first outlined this plan to get rid of Fed bond purchase, nothing has happened to change that plan; the global economy got stronger, the US‘ labour market got tighter, says David Kelly, JPMorgan Funds.
Brent crude oil futures for October fell 54 cents to USD 109.36 a barrel by 0529 GMT, down more than USD 2 from a four-month peak of USD 111.53 on August 15
Barring the tightening and the capital control measures that the RBI has taken recently, there is very little that inspires on the currency front especially given the fact that the currency weakness is driven entirely by the current account deficit (CAD) weakness
The yellow metal rose early in Asian trading on a weaker dollar but failed to find support amid lacklustre demand in China.
The only positive factor for the Indian economy has been the good monsoons. But even increased rural demand won‘t be sufficient to carry the entire economy and hence a 5 percent GDP growth looks rather optimistic
Federal Reserve chairman Ben Bernanke on Wednesday said that the US Central Bank still expects to start scaling back its quantitative easing programme later this year.
Markets are closely watching the Federal Open Market Committee (FOMC) meet on Wednesday and John Woods, MD & Chief Investment Strategist at Citi Pvt. Bank said markets are likely to be under pressure if the Fed does not take any concrete action.