MUMBAI // Financial markets in India are booming as more money from foreign investors flows into the country following the government's economic reforms.
Foreign institutional investors (FIIs) poured more than 190 billion rupees (Dh13.2bn) into India's equity markets last month, the highest monthly figure since February, according to data from the securities and exchange board of India.
The Sensex, the Bombay Stock Exchange's benchmark index, closed at 18,762.74 on Friday after reaching 17,972.54 at its highest point for August. Foreign investment flows and positive sentiment are also helping the Indian rupee to strengthen.
The rupee hit a five-month high of 52.86 against the US dollar on Friday, gaining almost 5 per cent last month, after slumping to a record low of more than 57 to the dollar in June.
Tough austerity steps in Spain have also helped to boost Asian markets.
"If [the] rupee further strengthens, which we hope it will with the steps the government is taking, we expect it could even touch 50 in the next two to three months or four months," said Arvind Mayaram, the Indian economic affairs secretary.
A wave of economic reforms were announced by the Indian government last month, including opening up the retail and aviation sectors to more foreign direct investment in an effort to attract more capital and boost the economy.
The government also unveiled a financial restructuring package for the power sector. There are hopes among investors that there are more measures to come.
In recent months, economists have cut their growth forecasts for India, partly because of the lack of action on policy reform. The ratings agency Standard & Poor's also warned the country was in danger of losing its investment grade rating and being downgraded to junk status. India's economic growth slowed to 5.5 per cent in the first quarter of the financial year.
"India's outlook in the near to medium term will be shaped by successful implementation of these measures," analysts at Crisil, an Indian ratings and research firm, said in a recent report. "The immediate and much-needed positive impact of these measures will be on investment climate and business confidence."
The Centre for Monitoring the Indian Economy, a think tank, has predicted FII inflows will strengthen to US$11.2 billion (Dh41.14bn) in the second half of this financial year, as major FIIs start to look at India as an attractive long-term investment destination.
The reforms announced by the government may have had a positive impact on business sentiment but the announcement that the retail sector will be opened up to up 51 per cent foreign direct investment has been opposed by many Indians. They believe the reforms could be detrimental to small, family-run retail businesses and India's poor.
Still, Manmohan Singh, the prime minister, reiterated at the weekend that the government was set to go ahead with the reforms because of the benefits they would bring to the economy.
Like other nations, India has been hit by the crisis in Europe, the frosty economic outlook in the United States and the slowdown in China, as well as high inflation.
"Any deterioration in investor risk appetite is likely to lead to a renewed depreciation of the rupee," said Andrew Kenningham, a senior global economist at Capital Economics.
business@thenational.ae
Quarter-finals
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If you go...
Fly from Dubai or Abu Dhabi to Chiang Mai in Thailand, via Bangkok, before taking a five-hour bus ride across the Laos border to Huay Xai. The land border crossing at Huay Xai is a well-trodden route, meaning entry is swift, though travellers should be aware of visa requirements for both countries.
Flights from Dubai start at Dh4,000 return with Emirates, while Etihad flights from Abu Dhabi start at Dh2,000. Local buses can be booked in Chiang Mai from around Dh50
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THE SPECS
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Tuesday
Sevilla v Maribor
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- Cecelia Crocker was on board Northwest Airlines Flight 255 in 1987 when it crashed in Detroit, killing 154 people, including her parents and brother. The plane had hit a light pole on take off
- George Lamson Jr, from Minnesota, was on a Galaxy Airlines flight that crashed in Reno in 1985, killing 68 people. His entire seat was launched out of the plane
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Engine: 6.5-litre V12
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Our legal consultants
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
The specs: 2018 BMW R nineT Scrambler
Price, base / as tested Dh57,000
Engine 1,170cc air/oil-cooled flat twin four-stroke engine
Transmission Six-speed gearbox
Power 110hp) @ 7,750rpm
Torque 116Nm @ 6,000rpm
Fuel economy, combined 5.3L / 100km
What is a Ponzi scheme?
A fraudulent investment operation where the scammer provides fake reports and generates returns for old investors through money paid by new investors, rather than through ligitimate business activities.
MOUNTAINHEAD REVIEW
Starring: Ramy Youssef, Steve Carell, Jason Schwartzman
Director: Jesse Armstrong
Rating: 3.5/5
The bio
His favourite book - 1984 by George Orwell
His favourite quote - 'If you think education is expensive, try ignorance' by Derek Bok, Former President of Harvard
Favourite place to travel to - Peloponnese, Southern Greece
Favourite movie - The Last Emperor
Favourite personality from history - Alexander the Great
Role Model - My father, Yiannis Davos
Paatal Lok season two
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Rating: 4.5/5
The five pillars of Islam
UAE currency: the story behind the money in your pockets
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The White Lotus: Season three
Creator: Mike White
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Electoral College Victory
Trump has so far secured 295 Electoral College votes, according to the Associated Press, exceeding the 270 needed to win. Only Nevada and Arizona remain to be called, and both swing states are leaning Republican. Trump swept all five remaining swing states, North Carolina, Georgia, Pennsylvania, Michigan and Wisconsin, sealing his path to victory and giving him a strong mandate.
Popular Vote Tally
The count is ongoing, but Trump currently leads with nearly 51 per cent of the popular vote to Harris’s 47.6 per cent. Trump has over 72.2 million votes, while Harris trails with approximately 67.4 million.
Killing of Qassem Suleimani
ELIO
Starring: Yonas Kibreab, Zoe Saldana, Brad Garrett
Directors: Madeline Sharafian, Domee Shi, Adrian Molina
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UAE currency: the story behind the money in your pockets
Our family matters legal consultant
Name: Dr Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
England's Ashes squad
Joe Root (captain), Moeen Ali, Jimmy Anderson, Jofra Archer, Jonny Bairstow, Stuart Broad, Rory Burns, Jos Buttler, Sam Curran, Joe Denly, Jason Roy, Ben Stokes, Olly Stone, Chris Woakes.
GAC GS8 Specs
Engine: 2.0-litre 4cyl turbo
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Torque: 400Nm at 1,750-4,000rpm
Transmission: 8-speed auto
Fuel consumption: 9.1L/100km
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Price: From Dh149,900
Best Academy: Ajax and Benfica
Best Agent: Jorge Mendes
Best Club : Liverpool
Best Coach: Jurgen Klopp (Liverpool)
Best Goalkeeper: Alisson Becker
Best Men’s Player: Cristiano Ronaldo
Best Partnership of the Year Award by SportBusiness: Manchester City and SAP
Best Referee: Stephanie Frappart
Best Revelation Player: Joao Felix (Atletico Madrid and Portugal)
Best Sporting Director: Andrea Berta (Atletico Madrid)
Best Women's Player: Lucy Bronze
Best Young Arab Player: Achraf Hakimi
Kooora – Best Arab Club: Al Hilal (Saudi Arabia)
Kooora – Best Arab Player: Abderrazak Hamdallah (Al-Nassr FC, Saudi Arabia)
Player Career Award: Miralem Pjanic and Ryan Giggs
Total eligible population
About 57.5 million people
51.1 million received a jab
6.4 million have not
Where are the unvaccinated?
England 11%
Scotland 9%
Wales 10%
Northern Ireland 14%
The specs
Engine: 2-litre or 3-litre 4Motion all-wheel-drive Power: 250Nm (2-litre); 340 (3-litre) Torque: 450Nm Transmission: 8-speed automatic Starting price: From Dh212,000 On sale: Now
Tree of Hell
Starring: Raed Zeno, Hadi Awada, Dr Mohammad Abdalla
Director: Raed Zeno
Rating: 4/5
Brief scores:
Toss: Sindhis, elected to field first
Pakhtoons 137-6 (10 ov)
Fletcher 68 not out; Cutting 2-14
Sindhis 129-8 (10 ov)
Perera 47; Sohail 2-18
