While fuel price had previously added a bit of relief, a recent spike, currency depreciation and international flight disruptions are adding fresh challenges to an already cost-sensitive sector
The Reserve Bank of India’s Monetary Policy Committee (MPC) will announce its interest rate decision on Friday, with the street sharply divided over the outcome. While industry hopes for a 25-basis-point cut amid benign inflation and a government focus on growth, others expect the central bank to stay cautious. The RBI had kept the repo rate unchanged at 5.5% during its previous meeting on October 1, marking a second consecutive pause after cutting rates by 100 basis points in the first half of 2025. However, the recent slide in the rupee may complicate the rate call. Catch this conversation between Moneycontrol’s Nandita Khemka and CNBC-TV18’s Latha Venkatesh for expert insights on what to expect from the MPC. #rbi #monetarypolicy #rbigovernor #rupees
There is a shortage of foreign exchange with India’s major export destinations, including Latin America and Africa.
Speaking to CNBC-TV18, M Shiv Kumar, chief financial officer, Raymond, says the company‘s strong Q2 performance has been the result of a revival in its apparel business that has also helped make profits. “All other bisuness segments, too have seen an all-round improvement,†adds Kumar.
The rupee on Monday closed at 61.79/USD, shedding 35 paise after stocks weakened on concerns about continuing US government shutdown.
Aditi Nayar, senior economist at ICRA believes the mid-quarter monetary policy review will not see overnight changes. A gradual reversal of the steps to address rupee's fall will be taken, she told CNBC-TV18.
Tech Mahindra is hopeful of benefitting from the weak rupee for 1-2 quarters. However, inflationary pressure will push up domestic costs and overall postive impact will be less, Vineet Nayyar, vice chairman of Tech Mahindra says.
India is looking at desperate measures to cut the country's oil costs by nearly USD 20 billion after the rupee slid to record lows. It has left the country with an oil bill 50 percent higher than on May 1.
The overall scope for investment in oil and gas sector is good and one should invest aggressively in it, says Jal Irani of Macquarie. He told CNBC-TV18 that easing subsidy burden, gas price hike next year will make these stocks look attractive.
India and Indonesia could see their credit ratings lowered if their governments fail to halt the current slump in investor confidence towards the countries, Fitch ratings said on Thursday.
The recent rupee depreciation has added another layer of uncertainty. It has made it difficult to determine what the right corpus size is when the actual time of financial goals arrives