Indonesia unexpectedly cut interest rates, and India has loosened its fluctuations. Are central banks in Asia ready to abandon the "MMF defense battle"?
Under the pressure of a prolonged economic downturn, some central banks in Asia have begun to prioritize boosting the economy rather than managing Exchange Rates.
Indian Equities Rise on Thursday as Softer US Inflation Boosts Rate Cut Hopes
India's Wholesale Price Inflation Eases to 2.4% in December 2024
Indian Equities Rebound on Tuesday, Aided by Easing Retail Inflation
India's Inflation Cools But Other Factors Could Delay RBI Easing -- Market Talk
India's Sensex Gains 0.4%, Led by Financial, Auto Stocks -- Market Talk
India's CPI continues to cool, which may support further interest rate cuts, but can the rupee withstand it.
In December, India's CPI rose 5.22% year-on-year, lower than the Analyst's expectation of 5.30%, marking the lowest growth rate since August 2024. Although falling inflation data has created room for the Reserve Bank of India to cut interest rates, factors such as the depreciation of the rupee and slowing economic growth still pose challenges for interest rate reductions in India.
India Inflation Cools Again, Opening Way for Rate Cuts
Has the Indian stock market hit bottom? There is a divergence on Wall Street.
Since the peak last September, India's benchmark stock index Nifty 50 Index has fallen over 10%, entering a correction zone. Some believe that slowing corporate earnings will drag down India's stock market performance this year, but most opinions remain bullish on Indian stocks, expecting a possible decline in the fiscal deficit rate, increased government investment in infrastructure, and a return of Indian stock valuations to a reasonable range to support the recovery of Indian stocks.
India's Sensex Slips 0.3%, Dragged by Tech, Industrial Stocks -- Market Talk
India's GDP Projected to Slip to 6.4% in FY25
India's Sensex Down 0.2%, Dragged by Tech Stocks -- Market Talk
India Markets to Rebound Later in the Year: Bernstein
India's Sensex Up 0.3%, Led by Financial, Industrial Stocks -- Market Talk
Is the new low just the beginning? Former India central bank officials hint at "relaxing Forex controls". How much further will the rupee fall?
Former central bank officials hinted at "easing Forex controls," causing the rupee to briefly dip below the 86 mark. Mitsubishi UFJ believes that the current account deficit as a percentage of GDP is widening, foreign direct investment (FDI) performance is disappointing, and under the risk of Trump 2.0 tariffs, the rupee will fall to 86.80 in the first quarter and to 88.50 in the fourth quarter.
India Shares End Lower; Bank and Tech Stocks Weigh -- Market Talk
India's Sensex Falls 0.1%, Dragged by Tech Stocks -- Market Talk
India's Benchmark Index Has Solid Start to Year -- Market Talk
The non-deliverable forward market arbitrage expands, and the Indian Rupee may hit a historical low again.
The significant demand for U.S. dollars in the non-deliverable forward (NDF) market has expanded arbitrage with the onshore market in India, putting greater pressure on the rupee, bringing it close to another historical low.
With corporate profits slowing and foreign investment withdrawing, the Indian stock market is expected to underperform against major Global peers in 2024.
The Nifty 50 Index and the Sensex Index rose by 8.8% and 8.2% respectively this year, marking the ninth consecutive year of growth.