Why the decline

When the rupiah fell below the 77 level after the Russian-Ukrainian war escalated and crude oil prices spiked, the Reserve Bank of India (RBI) sold dollars to prevent a fall in the value of the rupee. The RBI intervention – dollar sales via PSU banks – began when the rupiah broke through the 76 level and headed towards 77 against the dollar.

The RBI sold $5.135 billion to the banks on March 8 and simultaneously agreed to buy back the dollars at the end of the swap settlement period. When the central bank sells dollars, it sucks up an equivalent amount in rupees, thereby reducing rupee liquidity in the system. The influx of dollars in the market strengthened the rupiah which reached the level of 77 against the dollar on March 8th. On March 17, the rupee jumped 41 paise to close at 75.80/81 against the dollar.

Pressure on the rupee

Putting heavy pressure on the rupee, foreign investors have withdrawn Rs 41,617 crore so far in March. The outflow came after withdrawals of Rs 45,720 crore in February and Rs 41,346 crore in January. With this, REITs have withdrawn Rs 2,25,649 crore (excluding REIT investments in IPOs) since October 1, 2021, mainly anticipating an interest rate hike by the US Federal Reserve.

Additionally, Brent prices soared to a nearly 14-year high of $140 as the war in Ukraine escalated. As India imports nearly 80% of its domestic oil requirements, high crude prices would have led to a sharp increase in dollar requirements.

Sharp drop in FCA

The main components of foreign exchange reserves are foreign currency assets (FCA), gold assets and IMF SDRs (special drawing rights). The RBI sold dollars from its FCA kitty – kept in global central banks, foreign banks and foreign securities – to bolster the rupiah.

According to central bank data, FCA plunged $11.108 billion to $554.359 billion in the week ended March 11. The FCA includes the effect of the appreciation or depreciation of the dollar and non-US units such as the euro, the pound and the yen held in foreign exchange reserves.

However, with the surge in gold prices in the context of the Russian-Ukrainian war, the value of gold reserves increased by $1.522 billion to $43.842 billion during the reference week.

For the week ended, the country’s foreign exchange reserves decreased by $9.646 billion to $622.275 billion. Reserves had increased by $394 million to $631.92 billion in the prior week ended March 4. They reached a lifetime high of $642.453 billion during the week ended September 3, 2021.

RIYADH: Central banks in the Gulf and the UK raised interest rates, while economic growth in New Zealand resurfaced. The United States has seen changing levels of unemployment.

Gulf Interest Rates

Gulf central banks on Wednesday raised key interest rates by a quarter of a percentage point in line with the US Federal Reserve as it entered a cycle of monetary tightening in a new aggressive stance against rising inflation .

The six Arab countries of the Gulf Cooperation Council generally follow the Fed’s lead on interest rates, as their currencies are pegged to the US dollar, with the exception of Kuwait, which is pegged to a basket of currencies including the dollar.

“If Gulf policymakers did not allow interest rates to follow those of the United States, capital would flow out of their economies and this would put downward pressure on their currencies,” wrote James Swanston, economist for the Middle East and North Africa at Capital Economics. in a research note.

The Saudi Central Bank – also known as SAMA – raised its repo and reverse repo rates by 25 basis points each to 1.25% and 0.75%, respectively.

“The policy rate adjustments are consistent with SAMA’s objectives of maintaining monetary stability and supporting financial sector stability amid changing domestic and international monetary conditions,” the Central Bank of Saudi Arabia said in a statement.

The Central Bank of the United Arab Emirates raised its base rate, which applies to its overnight deposit facility, by 25 basis points to 0.4%. The CBUAE maintained the rate of borrowing short-term cash from it through all standing credit facilities at 50 basis points above the base rate.

UK interest rates

The Bank of England raised interest rates on Thursday in a bid to prevent rapid inflation from taking hold, but with households hit hard by soaring energy bills, it softened its language on the need for further increases.

Eight of the nine members of the Monetary Policy Committee voted to raise the Bank Rate to 0.75% from 0.5%, their third hike in as many meetings and returning rates to pre-pandemic levels.

The BoE said inflation is expected to hit around 8% in April – almost a percentage point higher than expected last month and four times its 2% target – and warned it could peak even later. during this year.

Soaring energy bills, even higher due to the conflict in Ukraine, means the squeeze on UK household budgets is likely to be much bigger than what the BoE predicted last month – which itself was expected to be the biggest. for 30 years.

Reflecting those concerns about the growth outlook, policymakers on Thursday pushed back on investors’ bets that the bank rate would rise sharply to around 2% by the end of this year, toning down its language on the need for further hikes. .

“The Committee judged that further modest tightening may be appropriate in the coming months, but there were risks on both sides of that judgment depending on how the medium-term outlook changes,” the BoE said.

Last month, the MPC said further modest tightening “is likely to be appropriate.”

Unemployment in the United States rolls

Last week’s claims data covered the period the government surveyed business establishments for the non-farm payrolls component of the March jobs report. Claims dropped significantly between the February and March survey periods.

The economy created 678,000 jobs in February. Employment growth was helped by the return of some workers to the labor market amid a significant drop in COVID-19 infections.

The claims report also showed the number of people receiving benefits after an initial week of help fell by 71,000 to 1.419 million in the week ended March 5. This was the lowest level for these so-called continuing claims since February 1970.

While permits for future home construction fell 1.9% to a rate of 1.859 million units, they weren’t too far off the nearly 16-year high reached in January. This suggests that an acute housing shortage will continue to support residential construction even if mortgage rates rise.

New Zealand GDP

New Zealand’s gross domestic product returned to growth in the final quarter of 2021 as the economy emerged from COVID-19 lockdowns, and economists said the data confirmed expectations that the central bank would expand further interest rates.

Production based on output rose 3.0% in the quarter, Stats NZ reported on Thursday. That was slightly below economists’ median expectations of a 3.2% rise and a sharp turnaround from a revised 3.6% drop in the September quarter, when shutdowns dampened the activity.

The Reserve Bank of New Zealand last month forecast growth of 2.3% for the December quarter.

“The fourth quarter GDP data reflects a robust, albeit very stimulated, economy,” ANZ economists said in a report.

Although there were a number of uncertainties over the outlook, the main concern was rising inflation in New Zealand which would force the RBNZ to tighten policy further, they added.

Annual GDP rose 3.1%, slightly below a Reuters poll forecast for a 3.3% rise.

The RBNZ has already raised interest rates three times since October.

“Given that the rebound in activity in the fourth quarter exceeded RBNZ expectations, today’s data will keep the Bank on its way,” Ben Udy, an economist at Capital Economics, said in a statement. a rating.

The Reserve Bank of India (RBI) will assess inflation in detail in the next monetary policy statement in April, after recent geopolitical tensions posed an upside risk to previous projections, Deputy Governor Michael said on Friday. Debabrata Patra.

He added, however, that monetary policy’s emphasis on price stability and government responses to control prices will get India out of trouble.

In his keynote on “Taper 2022: Touchdown in Turbulence”, Patra said India’s growth is likely to remain weak, as it did during the 2013 crisis, and the recovery is likely to be affected. due to tensions between Russia and Ukraine. Patra said geopolitical tensions could cause the RBI to revise its growth projection in the April policy. The central bank had forecast India’s economy to grow by 7.8% in 2022-23. The third wave of the pandemic had a relatively minor impact as evidenced by high frequency indicators. GDP is expected to grow only 1.8% from pre-pandemic levels, Patra said.

The deputy governor said the era of abundant liquidity was coming to an end, as the world’s central banks sought to shift gears and become bond sellers rather than buyers. The timing of this coordinated central bank balance sheet reduction could not have come at a worse time, as oil prices hit decade highs, he said. While India will not remain unscathed from the turmoil about to be unleashed by some central banks, India’s external sector is better off than it was in 2013, Patra said.

He raised a question that is at the heart of the market’s mind: will central banks shrink enough to control inflation or will they be excessive enough to stifle the global recovery? Patra said multilateral organizations in their baseline scenarios expect global gross domestic product (GDP) to decline by up to 2 percentage points in this year and next. Private sector estimates suggest that if crude oil hits $150 a barrel, it will drop 1.6% of global GDP while raising global inflation by 2%.

“The hawkish tones of systemically important political pivots in early 2022 confirmed financial markets’ worst fears – the era of abundant liquidity is coming to an end. Financial assets, which have been backed by liquidity in valuations strained, are being reassessed,” Patra said.

Although monetary policy always has a national orientation, he explained, its effects tend to ripple through emerging economies and then trickle down to systemically important economies. “It is always easier to enter a dwelling than to leave it.” Highlighting the outcome of the infamous 2013 taper tantrum and its effect on India, which joined the five fragile economies after its currency was minted, Patra argued that India’s external sector will have to bear the brunt of the global fallout.

Even though India’s situation is similar to what it was in 2013, the external sector is still more viable. says Patra. “In 2022, India faces similar risks to 2013 due to soaring international crude prices and the volume of gold imports. Yet the external sector is much more viable than it appears. t was in 2013. Even with strong import demand thanks to a recovering economy and average international crude prices currently above $100 a barrel, the current account deficit is expected to remain below 2.5 percent of the GDP, having averaged 1.1% of GDP during 2014-21 India now has more stable foreign direct inflows in 2022 compared to volatile portfolio inflows that left the country in 2013. “The biggest buffer India has today is its foreign exchange reserves. No country can be immune to the global fallout that a tightening of this magnitude could bring, but a strong external sector can cushion those shocks,” did he declare.

Patra contrasted the current situation with that of 2013 to explain how central bank balance sheets have widened since then over the past two years. This is the biggest difference between yesterday and today. “Before tapering began in 2014, the Fed had expanded its balance sheet by about $3.1 trillion over a 64-month period. In response to the pandemic, the Fed’s balance sheet grew by $3.1 trillion. dollars in the nine months from March to November 2020. It grew by another $1.3 trillion in the 11 months that followed through October 2021 and continued to grow through early March.

Markets reacted to the missile launches in Ukraine, but these externalities have already been seen. Patra, however, warned that there are spinoffs that haven’t been seen before. As commodity prices soar in the aftermath of the war, inflation could undermine household spending and the risk of a global recession could intensify.

(RTTNews) – Indian stock exchanges remain closed today due to the Mahashivratri festival.

Benchmarks Sensex and The Nifty reversed steep initial losses to end around 0.7% and 0.8%, respectively, on Monday, while the rupee slipped 2 paise to close at 75.35 against the dollar. .

Preliminary estimates from the Statistics Ministry showed later in the day that India’s GDP growth had slowed sharply in the three months to December.

GDP rose 5.4% year-on-year after rising 8.5% in the previous three months, which was revised from 8.4%. Economists had forecast growth of 6.0%.

The growth estimate for the 2021-22 financial year has been revised down to 8.9% from 9.2% announced on December 31.

Asian markets rose this morning as investors applauded positive manufacturing and non-manufacturing PMIs from China.

A cautious undertone prevailed as Russian President Vladimir Putin announced countersanctions and the country’s central bank introduced capital controls to try to stem a slide in the rouble.

Gold prices were eyeing support around $1,900 an ounce as oil prices traded higher despite reports that the US and its allies are discussing a coordinated release of gold. about 60 million barrels of oil from their emergency stocks.

US stocks ended a highly volatile session on a mixed note overnight amid an escalating Russian-Ukrainian conflict, rising oil prices and broader inflationary pressures.

The Dow Jones fell half a percent and the S&P 500 slid 0.2% while the tech-heavy Nasdaq Composite rose 0.4%.

European stocks ended Monday at their lowest for the day as Russian and Ukrainian officials held talks near the Belarusian border.

The pan-European Stoxx 600 index ended flat with a negative bias. The German DAX lost 0.7%, the French CAC 40 index fell 1.4% and the British FTSE 100 fell 0.4%.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Soaring gasoline prices are stoking inflation and causing headaches for governments and central banks around the world. In countries where elections are approaching, they are an additional headwind for incumbents.

While the midterm elections in the United States in November are the best example of the influence of fuel prices on the political sphere, the upcoming votes in Asia could also be affected. Voting is already underway in Indian state elections and South Korea is holding a presidential poll in early March. There are also Australian general elections and a contest for the upper house in Japan in the coming months.

Oil’s relentless march to triple digits has already prompted political action from incumbents. India cut retail sales taxes on petrol and diesel in November and there has been an unofficial price freeze since. South Korea imposed a temporary 20% cut in fuel taxes from October to April, which could be extended, while Japan subsidizes refiners to make fuel.

According to Sonal Varma, chief economist for India and Asia ex-Japan at Nomura Holdings Inc., governments in economies where wage levels lag behind inflation are the most vulnerable to an induced policy reaction. by gasoline.

“If a country has low-income growth and high inflation, then that becomes a double whammy, and then that could have both economic and political repercussions,” she said. This is of particular concern in Asia, given that all major economies in the region are net importers of oil, Varma said.

Australian retail gasoline is up 80% since early May 2020, while in Japan it has risen 37% as oil recovers from the depths of the pandemic. In India, major state-owned fuel retailers are expected to raise prices sharply after elections ending next month.

Voters there head to the polls in elections that run until early March in five states, including Uttar Pradesh, the largest state with more than 200 million people. Inflation, which breached the central bank’s 6% tolerance limit in January, signals a tough challenge for Prime Minister Narendra Modi’s Bharatiya Janata Party. Rural wages have not kept pace, rising just 3.31% in December from a year earlier, according to data from Bloomberg Economics.

South Korea elects a new president on March 9. Incumbent President Moon Jae-In is barred from seeking re-election, and polls indicate a tight race between his party and opposition candidates. Average wages rose 4% last year, while year-on-year inflation was 3.6% in January, so price gains may not play as big a role in the vote as elsewhere.

Australian Prime Minister Scott Morrison is due to call a general election before the end of May and polls show he could face a crushing loss. Consumer confidence has taken a hit as households battle soaring petrol prices, with the Reserve Bank of Australia forecasting core inflation to top 3%. Average salary levels increased by 2.2% in the third quarter of 2021 compared to the previous year, according to data from the statistics office.

In Japan, more than half of the seats in the upper house are up for grabs in a vote in July, which could affect Prime Minister Fumio Kishida’s chances of staying in office. Inflation expectations among households are at their highest since 2008, while average monthly cash incomes fell slightly in December from a year earlier. Kishida said on Thursday that other policies aimed at mitigating the effect of high oil prices on households were being discussed.

The growing political focus on trying to lower oil prices represents a move away from commitments made at the COP26 meeting late last year to accelerate efforts to phase out fossil fuel consumption. Rising oil prices are swelling the coffers – and influence – of Saudi Arabia and Russia, and reinvigorating an industry that was moving toward cleaner energy sources.

“High fuel prices have been a persistent issue in the global inflationary environment since 2021,” said Vandana Hari, founder of Vanda Insights, an oil market analysis provider in Singapore. “Of all categories of consumer goods, fuel prices are a particularly politically sensitive issue.”

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Hello and welcome to the Daily Crunch on Tuesday, February 15, 2022! We’ve got a loaded list for you today, including news that’s sure to annoy blockchain devotees, new funds, Facebook’s latest rebrand and more.

But first, in an essay on TechCrunch, former Homeland Security Secretary Michael Chertoff argues against unfettered “sideloading” of apps. It’s an interesting argument against Windows and the wider web (we’re kidding), but raises some notable points about mobile security and consumer expectations. It’s worth reading, whatever your background. – alexander

TechCrunch’s top 3

• India continues to debate the fate of cryptocurrencies: A country’s regulatory and banking bodies are debating blockchain technology and its associated tokens is a daily occurrence. But when an Indian central bank official compares cryptocurrencies to Ponzi schemes, we take notice. That the latest broadside against crypto comes after the country discussed a new tax proposal for the asset/currency class is a slight surprise.
• Goodbye newsfeed, hello newsfeed: Facebook is shaking up its brand image around its newsfeed product, now known simply by the nickname “Feed”. TechCrunch also notes that the company is rolling out a Facebook News product in the French market, so we might see a discrepancy between feed and news within the company. How you feel about this set of changes will depend on your view of the company, I think, but it hasn’t polled well on Twitter, at least so far.
• Intel pays $5.4 billion for Tower Semiconductor: As more capital pours into the chip design and manufacturing market, the announcement of new deals comes as no huge surprise. This time around, chip company Intel intends to pay billions for Tower, which, it should be noted, is part of the US giant’s broader manufacturing goals that it previously announced.

Startups/VCs

What is a startup really worth? Data from PitchBook indicates that 2021 accelerated the pace at which startups raised capital, yes, but also pushed the prices paid for startup stocks into the stratosphere. The result? Curiously, more value creation between rounds than before, which means big margins for venture capitalists, although they have to pay more, sooner. We chewed the data and asked ourselves: if venture capitalists are willing to pay much more for equity in startups today now that there is more competition, do the same investors have under -valued companies for years?

Today in mega-towers: Vehicle and Exchange. The pace at which huge rounds — and especially nine-figure rounds — are being held continues to impress in 2022. Today, TechCrunch has notes on Veho ($170 million, months after raising $125 million) and Swappie ($124 million). in his latest), investments that underscore just how much capital there is in the market for tech companies still private today, despite the public market selloff, inflation fears and central bank tightening. .

• FitOn raises $40 million and acquires Peerfit: I love starter chords, so I was excited to dive into this one. FitOn, what TechCrunch calls a “digital fitness and wellness company,” has raised a new round and purchased Peerfit’s “enterprise wellness platform.” You can spot the synergy from orbit – now Peerfit can offer FitOn to enterprises, which is perhaps the equivalent of a vertical integration app?
• Can Shortwave Make Email Less Terrible? Many people miss Google’s unfortunate inbox experience. It’s in the sad graveyard with Wave and Reader. Either way, some former Big Tech employees are looking to combine an Inbox-like experience with Slack-like elements. This is called short waves. And since email can’t get any worse, maybe try it?
• Postpartum depression care for black women: The health technology market has been busy in recent quarters, which means that more and more companies are trying to make improvements to the shortcomings of our broader healthcare system. One such gap relates to mental health care for black women struggling with postpartum depression. Fortunately, She Matters was designed to solve the exact problem. Ron Miller to our history.
• AmEx Air Base <3: The corporate spending market is hot around the world, but perhaps nowhere more competitive than in the US, where Ramp, Brex and Airbase go head-to-head. Airbase just landed a check and a partnership with AmEx, the corporate credit giant, on the back of its software. Could the deal change the tides in the competitive startup category?
• This cool-kid Ethereum wallet just got lifted: If you’re into the blockchain world, you might be familiar with Rainbow, which TechCrunch writes “looks more like the crypto wallet app a Snap or TikTok would design with rainbow gradient buttons, emojis galore and overall a far less sterile feel than reigning competitor MetaMask.It just scooped up funds from Seven Seven Six.

And much more: Homebound raised $75 million from Khosla, MoneyHash raised $3 million to build a fintech super-API for the Middle East and Africa, and Better Tomorrow Ventures raised $225 million for a new fintech fund. Basically, it’s busy there, so be sure to follow TechCrunch here and TechCrunch+ here.

Our Startup’s First Hire Was a Remote Split Lead

At this point, most startup employees have been working remotely. Despite this, few managers have significant experience supervising distributed teams.

With that in mind, SaaS startup Wingback made its first hire of a split remote manager, “and it was the best decision we made,” said Yann Leretaille, co-founder and CTO.

“A telework manager is not just a glorified HR manager. They make sure the right processes are in place and the right tools are selected and used to ensure successful remote work.

(TechCrunch+ is our membership program, which helps founders and startup teams grow. You can join here.)

Big Tech inc.

• The now public Nextdoor simplifies its application: Freshly spun off from a SPAC combination, Nextdoor is a public company. Which means it moves from our startups section to our Big Tech digest. Regardless, the company strives to “simplify [its] app and promote better neighbor relations,” we report.
• Twitter launches safe mode for more users: It’s no secret that Twitter can be a brutal place sometimes. Luckily for users who might find themselves on the wrong side of a deluge of hate, Twitter’s “Safe Mode” feature is now available in more markets. That might help.
• To keep an eye on the EU regulatory world, follow Natasha Lomas on Twitter. Another Daily Crunch, another regulatory element of Europe. Lomas crushes this topic for us, so follow her and stay up to date. The last? “The European Data Protection Supervisor (EDPS) has called for a block-wide ban on the controversial spyware tool Pegasus, warning that its use could lead to an “unprecedented level of intrusion”, she writes.
• And today in operating system mashups: Google wants to bring Chrome OS to your Mac or PC, and Microsoft is rolling out Amazon’s App Store support for Windows 11. Unfortunately, in the meantime, iMessage refuses to mess with anyone else.

And to conclude, I’m looking for a friend with $450,000 that he wants to give me, for no particular reason.

TechCrunch experts

TechCrunch is recruiting recruiters for TechCrunch Experts, an ongoing project where we interview top professionals about common issues and challenges in early-stage startups. If this is you or someone you know, you can let us know here.

The latest estimates released by the Ministry of Finance (2018) project that the cumulative cost of India’s current Nationally Determined Contributions (NDCs) is around $3.5 trillion. According to available statistics, no more than 10% of this sum will probably come from multilateral and international channels. The rest must be mobilized through the national financial system. But green finance remains scarce in India and small-scale, even as India emerges as a major player in the green bond market after the United States and China.

The green finance landscape in India has three notable features. First, the cost of green capital is higher due to its unconventional nature, the risks involved and the lack of a supportive regulatory framework. Second, there is a lack of solid and verifiable green financial products in the market. Those that do exist are biased towards debt instruments that only partially hedge the risk and scale of long-term financing. Finally, there is a predominance of projects to add renewable energy capacity, with small allowances for energy efficiency. Difficult sectors such as infrastructure, industry, resource efficiency and transport have few projects.

Although international agreements require climate finance to be concessional or grant-based, private finance has no such assurance. The cost of green finance tends to be higher than normal and acts as a deterrent. The country needs a favorable governance framework to encourage and mainstream green finance. Sound policy guidelines will help financial institutions understand their responsibilities in greening the financial sector. Mandating a share of loans for green projects can mitigate risk and help improve the rate of return.

At the institutional level, one could start by agreeing on a universally accepted definition of green finance and disclosure standards for companies seeking investment. To overcome multiple definitions, disclosures and reporting practices, the green finance taxonomy can be linked to NDC goals. If the financial sector regulator adopts them as a benchmark for green loans, there can be a positive impact on overall costs and access to finance. In due course, a standardized green taxonomy could be developed to align with international practices.

Disclosure by companies of the environmental impact of their actions is necessary to build investor confidence. SEBI requires the 1,000 largest publicly traded companies by market capitalization to file commercial responsibility reports. Establishing disclosure standards in these reports and enforcing them as part of a national reporting system could help eliminate information asymmetry for investors and reduce the cost of foreign capital.

The availability of verifiable good green products for investment, banking and insurance is necessary for the growth of green finance. Currently, green bonds dominate the market. However, there is a need to develop equity-based instruments complemented by policy instruments such as blended finance or results-based financing.

A major obstacle for the private sector is the perception of high risk and the additional costs involved in developing these products. Risk mitigation mechanisms are needed. Public funds backed by international finance can be used to provide risk mitigation support in the form of first-loss guarantees in debt and equity investments, hedge funds for external borrowing, subsidized insurance for climate-resilient assets, in addition to traditional grants and concessional loans.

The renewable energy sector today constitutes the largest share of green finance. Other sectors traditionally perceived as financially unsustainable, such as infrastructure, manufacturing, transport and the circular economy, need a similar scale of funding. Sectoral targets with monitoring provisions and a system of incentives/disincentives can encourage capital flows as well as innovations. The creation of special funds to cover the risks involved and the imposition of green lending standards by the central bank could be other ways to improve the viability of these investments.

Mobilizing finance for green purposes requires a combination of political support, regulations and risk mitigation instruments. Its success will be determined by the extent to which we are able to use funds and public policies strategically to close the sustainability gap and increase investment.

The author is a Distinguished Fellow of the Institute of Energy and Resources and former Special Secretary of MoEFCC

New Delhi: Indian stock markets have been very volatile over the past two weeks. On Tuesday, the benchmark, Sensex, showed strong swings. It opened at 57,621 and moved to 57,925. Later, Sensex fell to 57,058, later repeating the cycle of highs and lows throughout the day. As of 3 p.m., the index was trading at 57,523, about 100 points lower than the opening high.Read also – Share Market Today: 20 stocks for a profitable trade on February 8

Nifty50 has also been very volatile. After peaking at 17,536 on Tuesday, it fell to 17,119. As of 3 p.m., the index was trading at 17,220, about 300 points below the opening level. Real estate and banking stocks were weak performers. Read also – Adani Wilmar IPO today. Direct link to check the stock price here

But what explains the volatility of India’s stock markets. Let’s take a look. Read also – Monday Blues: Sensex closes more than 1,000 points lower, Nifty just over 17,200

Sale by foreign investors

Foreign investors are an important part of Indian markets. On Monday, the United States published its employment report. The report was quite positive. After the report, according to Economic Times, there is a good chance that the Federal Reserve, the central bank of the United States, will raise interest rates to control inflation.

This rise in rates will cause bond yields to rise and investors prefer bonds to markets from a safety perspective. This played a major role in Indian stock markets acting more volatile than usual.

Monetary Policy Committee meeting

The Reserve Bank of India (RBI) is holding its monetary policy meeting between February 8 and 10. The outcome of the meeting will be announced on Thursday 10 February. Investors fear that the RBI will raise policy rates, which will send money out of the stock markets into the banks.

Rate hikes are likely to control the rate of inflation. In addition, central banks around the world plan to adopt tighter monetary policy to limit the soaring budget deficit due to pandemic support programs.

This too has played a major role in weakening the minds of investors.

Rise in oil prices

In just a few weeks, crude oil prices have gone from $65 a barrel to $93 a barrel. According to the media, this is due to rising geopolitical tensions across the world.

Russia, which is the world’s second largest oil supplier, is very close to an armed conflict with its neighbor Ukraine. On the other hand, in the Middle East, Houthi rebels in Yemen and the United Arab Emirates are constantly exchanging fire.

With supply sources so stressed, oil prices are rising. This put additional pressure on central banks to adopt a hawkish stance, leading to volatility in the markets.

If reports are to be believed, market volatility will continue for a few more days.

The bank to provide better banking facilities in the villages

In a bid to provide better banking facilities to people living in remote areas of the state, the Chief Executive of Jharkhand State Bankers Committee (SLBC), Vikram Keshari Mishra, on Friday adopted Resham Village in Getalsud Panchayat , under Anagada Block and Village Area- Keram at Tundahuli Panchayat under Ormanjhi Block in Ranchi District during a Gram Sabha organized by Getalsud Branch and Ormanjhi Branch of Bank of India (BoI).

SLBC is committed to providing all banking facilities such as financial inclusion, social security schemes, credit flows, digital banking and others in all blocks in all districts of the state. Under the aegis of the SLBS working in this direction, at least one village out of all the 264 blocks of the State has been identified by the banks to ensure all the banking facilities of this village by adopting villages.

The objective of this program is to provide 100% basic banking services to the 264 villages with the help of banks by March 2022.

Mishra informed that based on today’s schedule, efforts are being made by the State Level Bankers Committee with the aim of providing all basic banking operations in the villages of Jharkhand in a planned manner.

In this program, information about various bank sponsored programs such as Financial Inclusion, Digital Banking, Social Security Scheme, Atal Pension Yojana and various loan programs like Kisan Credit Card, Auto Group – assistance, the Mudra loan, the agricultural vehicle were given to all the villagers. and miscellaneous Under the schemes, 182 applications were created and loan applications of 40 villagers were created and loans of `35.85 lakh were sanctioned.

The details of the villages adopted by various banks in the state are the name of the bank adopted the number of villages like Bank of India (BoI)-96, Jharkhand Rajya Gramin Bank (JRGB)- 58, State Bank of India (SBI )- 52 , Indian Bank-13, Punjab National Bank (PNB)-11, Canara Bank-8, Bank of Baroda (BoB)-8, Central Bank of India (CBI)-7, Union Bank of India (UBI)- 7, UCO Bank-3, Bank of Maharashtra-1

A large number of villagers were present in the above program, including key district officials, Ranchi, BoI, Getalsud branch and Ormanjhi branch, public officials from both villages, district progressive farmers, chiefs and others.