BQ Blue's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer BloombergQuint's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
ICICI Direct Report
The rupee outperformed most of its peers in 2021 despite of strong dollar and surge in crude oil prices. Major reasons for the rupee outperforming were a rise in risk appetite in the global markets.
Also, inflation remained under Reserve Bank of India's comfort zone, which helped the central bank to maintain lower borrowing cost to support the economic recovery. Additionally, balance of payment remained in surplus.
In 2021, yields in most major countries recovered on monetary tightening. Major central banks moved to tightening to control stubbornly high inflation. U.S. Federal Reserve started winding up its asset purchases programme opening the doors for a rate hike. UK became the first central bank in major countries to increase interest rates.
The rupee is likely to face resistance near 78 level and strengthen back to 72 levels in coming months as India seems to be in a better position to withstand any major shock from monetary tightening.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
