Rates, results to dictate rupee’s direction; strengthening expected (Currency Forecast)

14

By Rohit Vaid
New Delhi, July 31 |
Expected status-quo in monetary policy as well as robust equity markets are expected to strengthen the rupee during the upcoming week.

Last week, the Indian rupee declined marginally after three consecutive weekly gains following risk-off sentiments and fund outflows.

It closed the week at 74.42 before touching 74.22 and 74.75 during this period.

“Rupee managed a strong show despite continuous FPI outflows from Indian markets but was supported by IPO flows. Expect it to trade in range of 74.20 to 74.70 with a bias towards rupee strength,” said Sajal Gupta, Head, Forex and Rates at Edelweiss Securities.

“US Fed commentary had been dovish and risk supportive this would help aid risk sentiment across asset classes.”

According to Devarsh Vakil, Deputy Head of Retail Research at HDFC Securities: “Fiscal deficit and eight core-infra number and next week’s RBI policy meet are two key events to watch out for next week.”

“Spot USDINR is in small congestion zone with down side support around 74 and resistance at 74.90.”

The monetary policy review is slated for August 4-6.

Accordingly, market observers, expect a status-quo on key lending rates.

“Expectation is that the RBI could continue to hold its dovish stance and at the same time what their outlook is on inflation and growth will be keenly eyed by investors,” said Gaurang Somaiya , Forex & Bullion Analyst, Motilal Oswal Financial Services.

“From the US, manufacturing PMI and non-farm payrolls numbers are scheduled and with the Fed raising concern over the recovery of the jobs market; any disappointment is likely to further weigh on the dollar.”

In addition, he said that for the week ahead, the USDINR(Spot) is expected to trade with a negative bias and quote in the range of 73.80 and 74.80.

(Rohit Vaid can be contacted at rohit.v@ians.in)

Source: IANS

Next Story

Does MBA really help in getting a better job offer ?

Does MBA really help in getting a better job offer ?

Most students pursuing an MBA come with the sole objective of having a decent job offer or a promotion in the existing job soon after completion of the MBA. And most of them take loans to pursue this career dream. According to a recent survey by education portal Campusutra.com  74% MBA 2022-24 aspirants said they would opt for education loans.

There are exceptional cases like those seeking master’s degree or may have a family business to take care of or an entrepreneurial venture in mind. But the exception cases are barely 1%. For the rest 99%, a management degree is a ticket to a dream job through campus placements or leap towards career enhancements. Stakes are high as many of them quit their jobs which essentially means loss of 2 years of income, apprehension and uncertainty of the job market. On top of that, the pressure to pay back the education loans. Hence the returns have to be high. There is more than just the management degree. Colleges need to ensure that they offer quality management education which enables them to be prepared for not just the demands of recruiters and for a decent job but also to sustain and achieve, all along their career path.

  • So, what exactly are the B Schools doing to prepare their students for the job market and make them industry ready ?
  •  Are B schools ready to deliver and prepare the future business leaders to cope up with the disrupted market ?  

These are the two key questions every MBA aspirant needs to ask, check and validate before filling the MBA application forms of management institutes. And worth mentioning that these application forms do not come cheap. An MBA aspirant who may have shortlisted 5 B Schools to apply for, may end up spending Rs 10,000.00 to Rs 15,000.00 just buying MBA / PGDM application forms.

While internship and placements data of some management institutes clearly indicates that recruiters today have specific demands. The skill sets looked for are job centric and industry oriented. MBA schools which have adopted new models of delivery and technology, redesigned their courses, built an effective evaluation process and prepared the students to cope with the dynamic business scenario, have done great with campus placements despite the economic slow down.

However, the skill set being looked for by a consulting company like Deloitte or KPMG may be quite different from FMCG or a manufacturing sector. Institutes need to acknowledge this fact and act accordingly.

  • Management institutes should ensure that students are intellectually engaged, self motivated and adapt to changes fast. In one word ‘VUCA ready’.
  • B Schools should encourage students to participate in national and international competitive events, simulations of business scenarios.
  • Institutes should have the right mix of faculty members with industry exposure and pure academics.

The placement records of 2021 across top management institutes indicated the fact that recruitment is happening, skilled talent is in demand and certain management institutions continued to attract recruiters even in the middle of an ongoing crisis.

It is time, all management institutes rise to the occasion, understand market realities and identify areas of improvement at both ends – students and faculty.

After all, the stakes are high at both ends. B Schools taking corrective measures will stay while those which are lagging will end up shutting down.

Author Name : Nirmalya Pal

LEAVE A REPLY

Please enter your comment!
Please enter your name here