Rupee Sees Biggest Single-Day Fall in a Month; No Indian Firm in MSCI EM Top 10 for First Time in Two Decades
The Wire Staff
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New Delhi: In its biggest single-day decline in a month, the Indian rupee fell 77 paise to 95.71 against the dollar, with the dollar index also increasing to 100.21 before settling at 99.89, reported Financial Express.
In the present calendar year, the rupee has declined by 6.5%. Last year, rupee had depreciated by 10.4%. Meanwhile, oil prices too surged by 4% on Monday in the aftermath of fresh strikes between Iran and Israel.
Earlier, the Reserve Bank of India (RBI) had on Friday (June 5) announced a slew of measures to support the falling rupee, alongside the government’s tax cut on foreign investments into government securities.
The rupee has been on a downward spiral since last year, gradually inching towards the 100 against dollar mark. Experts and economists have expressed concerns about the falling rupee, which
On the other hand, in a disappointing development for Indian companies, owing to a boom in artificial intelligence (AI)-linked stocks, for the first time in more than two decades, domestic companies have been pushed out of the top 10 constituents of the widely tracked MSCI Emerging Markets (EM) Index, reported Business Standard.
The Business Standard report added that this was the first time since 2000 when no Indian company features among the top 10 stocks of the index.
The index serves as a benchmark for passive funds, managing more than $700 billion globally and is also closely tracked by actively managed EM funds.
At present, the two largest Indian constituents in the index – HDFC bank and Reliance Industries Ltd (RIL) – have slipped to the 11th and 12th positions from seventh and eighth positions, respectively in March.
After a weakness in their share prices this year, their individual weightings in the index have also fallen below 0.8%.
While the shares of HDFC Bank and RIL are down about 26% and 20%, respectively, from their peaks, AI-linked heavyweights including Taiwan Semiconductor Manufacturing Company (TSMC), Samsung Electronics and SK Hynix have increased by 48%, 147% and 194%, respectively, during the same period.
With the AI boom stocks, at present Taiwan, South Korea and China together now account for roughly 70% of the benchmark, while AI beneficiaries TSMC, Samsung Electronics and SK Hynix collectively make up nearly 30%.
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