Indore Stock：Foreign capital escaped India： This quarter’s stock market outflowed 4 billion US dollars in rupees of the Rs.
Financial Association (Mumbai, editor, Chunchun) News, after wearing thorns all the way, and setting a historical high in October this year, the direction of the Indian stock market is rapidly reversing.In the fourth quarter, foreign funds began to escape from the Indian stock market, withdrawal of 4 billion US dollars.At the same time, the local currency rupees fell 2.2%this quarter, and may become the worst currency in Asia.
Foreign investors are selling Indian stocks. Goldman Sachs Group and Nomura Holdings have recently lowered their expectations for the Indian stock market because the valuation is too high.Indore Stock
At present, concerns about Omitcor’s virus varieties are impacting the global market, including India.The record deficit of record highs, and the differences in policy differences between the Indian Bank of India and the Federal Reserve also weakened the arbitrage attraction of rupees.
"Differential monetary policy and the expansion of the frequent account gaps have led to the recent depreciation of the rupee." S said that the Indian Industrial Credit Investment Bank (ICICI Bank LTD.) global market sales, transactions and research departments, said, said, B. Prasanna.
For the Indian central bank, the Decade of the rupee is a double -edged sword.Although the weakening of the rupee may boost exports in the early days when the economy recovers, it will also bring input risk of input inflation, and it may make it difficult for the central bank to maintain interest rates at a low level in a longer period of time.
Foreign Exchange Risk Management Consulting Company Quantart Market Solutions predicts that by the end of March next year, the rupee’s exchange rate will fall to 78 rupees, which is lower than the historical low of 76.9088 rupees set in April 2020.The traders and analysts surveyed by Bloomberg predict that the rupee’s exchange rate against the US dollar will fall to 76.5 rupees.The rupee will fall for the fourth consecutive year this year, with a decline of about 4%.
The Indian stock market has changed sharply from the peak in October
Foreign investors’ withdrawal has led to the Indian benchmark stock index Pu BSE Sensex index down about 10%from historical highs set in October this year.
Nevertheless, the one -year long -term price -earnings ratio of the Sensex index is still close to 21 times, which is much higher than the MSCI emerging market index, which means that the Indian stock market still has room for further decline.
In addition, the Indian bond market has also exported $ 587 million in funds this quarter.
With the increase in imports, India ’s November trade deficit has expanded to a record high of about $ 23 billion, and the voices of empty rupees have continued to rise.Goldman Sachs said that the Indian central bank has abundant liquidity -to a certain extent by the Indian central bank’s purchase of US dollars -may make it difficult for the central bank to intervene in the same degree in 2022 to curb the decline of the rupee.Surat Wealth Management
However, not everyone is pessimistic.UBS AG said that as the Life Insurance Corp. of India is listed on the market, foreign inflows may reverse in the next quarter, which may support the rupee.It is expected that Indian Life Insurance Company is expected to create the largest IPO in India.
Kanpur Investment
