Global currency markets are witnessing heightened volatility as the US Dollar continues to lose strength against major currencies, but Indian rupee has found relative stability and weakness in dollar could lead to FII inflows, a report said on Tuesday.
Major factors, including auto sales figures, PMI data, Foreign Institutional Investor (FII) activity, and international economic updates, are expected to drive the Indian stock market this week.
Union Finance Minister Nirmala Sitharaman Monday said the foreign institutional investors (FII) are selling Indian equities lately due to the profit booking.
A perplexing feature of the recent FII activity is their highly erratic nature.
However, gold reserves, which form part of the foreign exchange kitty, increased by $1.08 billion to $68.53 billion during the week, according to the central bank.
During the visit, Goyal participated in the Plenary Session of the 8th Edition of Future Investment Initiative (FII), with representatives from global governments and the industry.
The forex had hit an all-time high of $704.885 billion at the end of September.
Indian benchmark indices Nifty and Sensex ended the week with gains after two consecutive weeks of losses.
The US Fed’s rate decision, more importantly the Fed commentary on Wednesday night, will decide the trend in the US market, he said.
FIIs have lost in this tug of war with DIIs since the market has been scaling new highs despite FII selling, he said.
