If a firm has received approval for issuing masala bonds and the limits have been blocked, there has to be a timeline in which the limits should be utilised. When the approvals were given, no body would have thought about the timing. Right now, the FPI investment limits that have been utilised includes the limits that have been kept aside for those firms, which have received approvals for issuing the masala bonds. What will happen to masala bond limits? Will these be segregated from the overall corporate bond limit allotted to FPIs? The central bank would not be too happy in raising the limits but the ministry may wish for it. Unlike before, the RBI and the ministry of finance are quite coordinated. It’s great when the going is good but when the going gets difficult, a lot of these funds may go out. I don’t think the central bank would be in any hurry to raise the limits when the flows are coming in. Do you think the limits will be increased any time soon? By the end of the year you may see the currency hitting 62 levels.įPI investment limits in corporate bonds have almost been fully utilised. But this time, even that has been proved wrong. If you look at it historically, the rupee has always depreciated around this time of the year. On a seasonality perspective, we thought the rupee would depreciate a little bit in July-August. Even if foreign investors put in `10,000 crore, that would be a huge inflow. Moreover, you have IPOs worth Rs 27,000 crore lined up over the next two months just from the insurance segment. Wherever the central bank decides to draw the line, that becomes the line. However, most of the market did turn around. India and some other countries in the emerging markets that did not have adequate forex reserves got impacted more. It was just an announcement and nobody knew anything more than that. Despite this, there was turmoil in the financial markets in 2013…Īt that point in time, the market did over-react because it was the first time such a thing had happened. The US Fed takes great care in making statements. But, some kind of risk is definitely there. All statements made by central banks indicate they want to be as non-disruptive as possible in getting their balance sheets back to normal. The good part is the US Fed as well as the other central banks are aware of the situation. If the Fed shrinkage of balance sheet happens in a disruptive way, we may go back to the 2008 situation. We survived 2013 when the rupee plunged following the tapering announcement by the US Fed. If this happens, do you think the rupee would take a hit led by the dollar’s appreciation? There are indications that the US Fed might begin trimming its balance sheet relatively soon. EPFO Higher Pension Calculation 2023: How much pension you can get on a monthly basis
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