Discover the top business headlines that are trending across the world today!
The benchmark indices started flat on Monday, as gains in IT and auto stocks were offset by declines in energy and metal stocks. At 9:40 AM, the S&P BSE Sensex fell by 48.63 points to 79,437.69, and the Nifty50 slipped 20.40 points to 24,127.80. Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, remarked that while the US markets' sustained rally has lifted indices like the Dow and S&P 500 past significant milestones, this momentum has not translated into a boost for Indian markets. He attributed the US rally to optimism surrounding tax cuts and pro-business policies expected under Trump’s administration, which could enhance corporate earnings.
On Monday, the Indian rupee hit a historic low against the US dollar, largely impacted by Donald Trump’s recent US election victory, which unsettled Asian currencies. Early trading saw the rupee tumble to 84.3875, breaking previous records, before stabilizing slightly at 84.37. Persistent outflows from Indian equities added to the rupee’s woes, amplifying market caution.
To counter this depreciation, the Reserve Bank of India (RBI) actively intervened by directing state-run banks to sell dollars, curbing sharper declines. However, these measures have taken a toll on India’s foreign exchange reserves, which fell for the fifth consecutive week, reaching $682.13 billion as of November 1.
The rupee’s struggles reflect broader regional trends, with Asian currencies dipping by 0.1%–0.4% amid a strong US dollar, bolstered by Trump’s win and a robust dollar index near a four-month high of 105. While RBI’s efforts stabilize short-term fluctuations, the declining reserves highlight growing economic challenges.
The Reserve Bank of India (RBI) has introduced significant updates to Know Your Customer (KYC) guidelines, enhancing the efficiency and security of identity verification processes. These revisions aim to streamline KYC procedures for both customers and financial institutions. The changes facilitate better data sharing, encourage timely updates, and strengthen safeguards against financial crimes like money laundering.
For customers, these updates mean quicker account processing and hassle-free KYC updates. Financial institutions benefit from secure and simplified data access, promoting seamless operations and reducing compliance risks. These measures are expected to ensure a safer and more user-friendly banking experience for all stakeholders.
India’s consumer price inflation surged to a 14-month high of 5.81% in October, primarily driven by soaring vegetable and edible oil prices, according to a Reuters poll. Food inflation, comprising nearly half the inflation basket, intensified due to erratic rains affecting crop yields, with tomato prices rising significantly. Additionally, a 20% hike in edible oil import taxes in September further strained household budgets. Experts foresee inflationary pressures persisting due to climate risks, currency depreciation, and global uncertainties. Core inflation was estimated at 3.60% for October, spurred by festive demand and rising gold prices.
