INR plunges to 5-month low
The Indian rupee plunged 23 paise to close at a five-month low of 86.78 (provisional) against the US dollar on Monday amid a strengthening dollar and volatile crude oil prices following the US strike on Iran's nuclear facilities. A sharp decline in the domestic equity markets further pressured the rupee. Indian shares fell on Monday, but ended off their day's lows as markets apparently took the U.S. strikes against nuclear targets in Iran in their stride and waited to see how Iran reacts and what happens to Tehran's nuclear program. The benchmark 30-share BSE Sensex hit an intraday low of 81,476.76 before closing down 511.38 points, or 0.62 percent, at 81,896.79. The broader NSE Nifty index ended down 140.50 points, or 0.56 percent, at 24,971.90, after having hit a low of 24,824.85 earlier. However, strong FII inflows, along with a rise in the country's forex reserves prevented further losses in the rupee. On the NSE, USDINR futures ended higher by 0.14% at 86.78. Powered by Capital Market - Live News
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Hindustan Times
16 minutes ago
- Hindustan Times
The false binary of old and new cities
Jun 23, 2025 08:51 PM IST HT reported Monday that the Centre has decided to shelve a scheme mooted by the 15th Finance Commission to build eight greenfield cities. The funds, ₹ 8,000 crore, will now be utilised to improve infrastructure in cities with a population of up to 100,000. Interestingly, at least 26 proposals for new cities were in consideration when the scheme was abandoned. The binary of greenfield versus brownfield cities makes no sense in the Indian context. Cities are not merely the built-up area; they can become living spaces only if the physical infrastructure enables economic activities. (ANI) India is urbanising at great speed and existing cities are unable to carry the burden of ever-expanding populations. Existing cities need a massive infusion of capital to augment creaking infrastructure to withstand the inflow of people. Spatial differences are vanishing so much that planners now speak about urban conglomerations that subsume peri-urban areas — multiple towns, cities and villages — in existing metropolises. Schemes such as JNURM and the current AMRUT mission have attempted to fix the infrastructure gaps. This must continue. But these efforts need to be complemented with greenfield cities that can be sustainable in terms of water and energy use. The case of Amaravati is interesting; the city was conceived as not just the administrative capital of Andhra Pradesh but also as a potential economic hub. India needs more Amaravatis. Cities are not merely the built-up area; they can become living spaces only if the physical infrastructure enables economic activities. Just as roads and rail networks to sewage systems and garbage disposal are needed, cities, greenfield and brownfield, must provide uninterrupted power and clean drinking water, ensure law and order, and build soft infrastructure such as educational institutions and provide entertainment options. Old cities have achieved such 'organicity' over decades if not centuries: City builders of the past considered urban spaces as cultural and economic hubs and made provisions for it. Greenfield projects in India may need tweaks so that they plug into the idea of a layered urban living space rather than elite enclaves — but they are an idea worth exploring. Unlock a world of Benefits with HT! From insightful newsletters to real-time news alerts and a personalized news feed – it's all here, just a click away! -Login Now!
India.com
22 minutes ago
- India.com
India-US Trade Deal To Increase US Exports To India: Crisil
New Delhi: Given that India has much higher tariffs than those imposed by the US, the impending Bilateral Trade Agreement (BTA) — which would reduce tariffs — is set to increase US exports to India more than vice versa, according to an analysis by Crisil. India would be able to import more energy products, certain agricultural products, and defence equipment, among others, from the US, Crisil said in a 'Quickonomics' report. India, according to Crisil, should be prepared to see more imports from the US under the BTA. A lowering of tariffs under the agreement would make US goods more competitive in India, it argued. "This is because India's tariffs are much higher than those of the US, and bringing these down would be advantageous to exporters in the US," Crisil said. India's exports, however, are unlikely to see a major spike because the focus of President Donald Trump's administration is to reduce its trade deficit with India, and most of India's top exports to the US are already duty-free (excluding the baseline 10 percent tariff applicable since April 10). Besides, the export potential would also depend on the level of tariffs India faces compared to other competing nations, Crisil noted. The US has categorically stated that it wants to reduce its trade deficit with India (among other nations) and has complained that India's high tariffs and non-tariff barriers have hindered American companies from increasing their exports. Even though India has shown its discomfort with allowing US agricultural products into the country, imports of certain items such as walnuts, pistachios, and cranberries could rise, as India's share in US exports of these items was relatively low — at 19.4 percent, 5.0 percent, and 3.1 percent, respectively — in 2024. This contrasts with almonds, where India's share was a hefty 70.5 percent in 2024 — making it one of the US's top agricultural export items to India. Further, with India's aviation sector growing, there is scope to increase imports of civilian aircraft, engines, and parts. According to Crisil, there also seems to be strong complementarity in the energy sector, as the US is a large exporter and India a large importer of energy commodities. Even though India has a significant opportunity to import crude oil from the US, Crisil said the prospects of increasing such imports would have to be weighed against challenging factors — such as the higher cost of transportation and longer transit times. "The US is a large exporter and India a large importer of LNG, providing a mutually beneficial ground. Here, the synergy seems to be much better than that in crude petroleum, as the US is already among the top three suppliers of LNG to India," Crisil said. "With favourable factors such as US natural gas prices being more stable than those in the Middle East (India's largest LNG import partner) and long-term contracts being signed between Indian entities and US suppliers, there has been an increase in the import of this commodity from the US," it added. Defence imports into India could also rise under the BTA. "Even as India is trying to increase its defence production and export capabilities, it remains one of the largest arms importers. At the same time, the US is the world's largest arms exporter. While Russia has traditionally been India's largest arms supplier, its share in India's arms imports has declined in recent years. This has created space for Western suppliers, led by the US, to step up their sales," the report said. In fact, in 2023, the US and India launched a bilateral Defence Acceleration Ecosystem (called INDUS-X) to facilitate defence collaboration between the two countries. Combining all these opportunities, India's trade surplus with the US is expected to come down — a major demand from the US, which has implemented reciprocal tariffs on countries in proportion to their trade surplus with it. On the other hand, India may see some gains in exports of smartphones, certain pharmaceuticals, and labour-intensive sectors such as textiles and gems and jewellery. The US announced reciprocal tariffs on India and a host of other nations on April 2, and then paused the increase for 90 days from April 10 to negotiate trade deals with these countries. (For India, the reciprocal tariff was 26 percent — lower than the tariff on many other Asian peers.) During the pause period, a 10 percent base tariff remains applicable (over and above the existing tariffs) on all countries, including India. India is currently negotiating a trade deal with the US, known as the Bilateral Trade Agreement (BTA) — the first tranche of which is targeted to be completed by the fall of 2025.
Economic Times
23 minutes ago
- Economic Times
L&T lists India's 1st ESG bonds on NSE, raises Rs 500 crore
Engineering and construction conglomerate Larsen & Toubro (L&T) on Monday announced the listing of the country's first environmental, social and governance bonds on the NSE, raising Rs 500 crore through debentures. ADVERTISEMENT In a filing to BSE, the company said it "has listed India's first ESG bonds on the National Stock Exchange (NSE), setting a precedent for a greener and more sustainable financial future in India". The company said it has raised Rs 500 crore through non-convertible debentures (NCD) at a coupon rate of 6.35 per cent. The debentures will mature over a period of three years, with annual interest payments. HSBC served as the sole lead arranger for the transaction. The bonds, issued under Sebi's newly introduced ESG and sustainability-linked bond framework, were launched on June 5. "This deal reinforces our commitment to driving L&T's ESG goals and supporting the larger energy transition objective," R Shankar Raman, president, whole-time director and CFO of the company, said. ADVERTISEMENT As part of the sustainability-linked bond agreement, the company undertakes environmental commitments, targeting measurable reductions in freshwater withdrawal intensity and greenhouse gas emissions. These goals align with the company's broader vision of achieving water neutrality by 2035 and carbon neutrality by 2040. "This successful issuance is a significant milestone in India's financial markets, illustrating growing investor appetite for ESG-compliant financial instruments and setting a benchmark for future sustainable financing ventures," it said. (You can now subscribe to our ETMarkets WhatsApp channel)
