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India Plays Spoiler as Global Markets Rally - Wednesday, May 23, 2012
Re’s new low pulls down stocks; Mathematical models show currency could fall below 60 to $
OUR BUREAU MUMBAI
India stood out like a sore thumb, with the rupee crashing to a new low and stocks falling while the rest of the world rallied on hopes that Europe, the epicentre of financial turmoil, may shift its stance to growth from austerity.
The effect of the Reserve Bank of India’s (RBI) move to curtail currency arbitrage on Monday was short-lived as policy inaction led to Morgan Stanley lowering its forecast for economic growth. The slide resumed when the demand for US dollars from oil importers and a government department hit the market, said traders.
Finance Minister Pranab Mukherjee left the fate of the currency to market forces, saying, “The government is taking a series of steps. However,managing rupee is market-related... There is a lot of volatility.” (full story) |
Jet to Sack 72 Expats to Take Locals on Board - Wednesday, May 23, 2012
Airline cites curtailed monsoon schedule & easy availability of local pilots for move
MANISHA SINGHAL MUMBAI
In an attempt to prune costs and navigate itself out of the turbulence in the Indian aviation sector, the nation’s largest private airline, Jet Airways, has decided to terminate contracts of 72 of its high-cost expatriate pilots. The Naresh Goyal-promoted airline sent notices to a section of its expat pilots last week.
Nikos Kardassis, CEO, Jet Airways, confirmed the development to ETand said this was necessitated by a curtailed monsoon schedule and also the availability of pilots to tap from the local pool.
“We are reducing the level of operations for the monsoon season (as we do every year) and speeding up the process of training qualified Indian pilots from co-pilots to captains. We are also looking to recruit qualified Indian pilots available in the market at the moment,” Kardassis said in a response to a query from ET. (full story) |
We have info on PN holders: Sebi - Wednesday, May 23, 2012
Says Finmin Hasn’t Sought Details Of Beneficiaries Of These Instruments
Sidhartha TNN
New Delhi: A day after the government cited participatory notes (PNs) and market manipulation as one of the sources for generation of black money, the Securities & Exchange Board of India (Sebi) has said that it has records for the past several months on the instrument but the finance ministry has not bothered to check these details.
Participatory notes are derivative instruments used by overseas players to invest in Indian markets via foreign institutional investors. While several investors use PNs as they don’t want to commit to large transaction costs for relatively small investments, officials in the revenue department and enforcement agencies believe that it is often used to mask the ultimate beneficiary. (full story) |
RBI may take big bang steps to tame rupee - Wednesday, May 23, 2012
Currency Hits New Low Of 55.47 Against $
TIMES NEWS NETWORK
Mumbai: The foreign exchange market is bracing itself for sledgehammer measures by the Reserve Bank of India given the sharp depreciation in the rupee in the last few sessions. The rupee further weakened against the dollar to close at 55.40 after hitting 55.47 intra-day on Tuesday following a downgrade of Japan by rating agency Fitch.
The rupee, which opened stronger against the dollar, soon started weakening steadily to close at the day’s low. Dealers said that none of the central bank’s measures to steady the rupee have had an impact. RBI has exhausted close to $20 billion of its reserves in supporting the rupee. It has allowed corporates to pay more on external borrowings, freed interest rates on non-resident deposits, and cracked down on banks going long on the dollar. (full story) |
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