Wallet Investment

  How does Currency depreciation affect on Stock Market?   The falling Indian rupee, now at its lowest ever at 85.68 against the US dollar, affects the stock market in several ways:   photo credit- Google Impact on Import-Dependent Sectors     Industries reliant on imports, such as oil, electronics, and machinery, face higher costs due to the weaker rupee. This can lead to reduced profit margins and potentially lower stock valuations for companies in these sectors.   Export-Oriented Sectors Companies that sell products overseas can benefit. Their goods become cheaper for foreign buyers, boosting sales and stock prices. IT and textile companies often do well in these situations. Foreign Investment: When the rupee falls, foreign investors often pull their money out of Indian stocks. This has been happening lately, making the market more unstable.   Price Increases A weaker rupee makes imported goods more expensive, push...

The RBI Governor  is pivotal in shaping India's economic stability and financial infrastructure. As the head of the Reserve Bank of India, their decisions profoundly impact inflation, growth, and financial sector health. Below are the key responsibilities and the economic implications of their role Photo Credit- Wikipedia Key Responsibilities   Monetary Policy Formulation The Governor chairs the Monetary Policy Committee (MPC), which determines interest rates and other policies to control inflation, foster growth, and maintain monetary stability.  Currency Issuance and Regulation Supervises the issuance of currency and ensures adequate supply while combating counterfeiting. Also maintains public confidence in the currency.  Banking Sector Oversight Regulates and monitors the operations of banks and non-banking financial institutions (NBFCs) to ensure systemic stability and consumer protection.  Foreign Exchange Management Manages the country’s foreign excha...