Traditional products have low returns
DLF Pramerica’s ‘Aajeevan Samriddhi’ is a participating whole-life insurance-cum-savings plan. The plan provides life cover up to the age of 99 years; the premium has to be paid only for a limited tenure. The policyholder will be eligible for guaranteed additions of Rs40 per Rs1,000 sum assured for each completed policy year for the initial five...
Rupee is amongst the worst performing Asian currency and FII's are less optimistic on the outlook for India, which has been suffering from capital outflows
The Indian rupee continues to fall to new levels of 64 per US dollar due to heavy outflows by foreign institutional investors (FII) from the stock market. In the early morning trade the rupee reached 64.11, however it later recovered to 63.75 at around 10.30am.
The continuous fall in domestic currency raises serious concerns for the union government and the Reserve Bank of India (RBI).
A strong US dollar and concerns over funding the current account deficit (CAD) amid heavy outflows by foreign investors from emerging markets are weighing on the rupee sentiment.
Rupee is amongst the worst performing Asian currency and FII's are less optimistic on the outlook for India, which has been suffering from capital outflows because the barriers to investment are too high.
There were investments of around $15.35 billion in equity markets in the first five months of this year, whereas they have withdrawn investment worth $2.6 billion from June 2013 till date.
Its a vicious cycle, wherein rupee weakness is leading to a fall in equity markets as FIIs are withdrawing their money to protect their capital and this in turn is leading to further depreciation of the domestic currency.
In addition, JP Morgan on Tuesday downgraded India to ‘neutral’ from ‘overweight’ citing strain in balance of payments. This could further weaken sentiments of foreign investors.
The BSE 30-share benchmark Sensex fell below 18,000 levels by shedding 310 points or 1.7% to 17,997 points in early morning trade.
High Court directs IRDA
The Bombay High Court has directed Insurance Regulatory and Development Authority (IRDA) to issue guidelines for insurance companies to come up with package rates for 42 standard ailments. The package rates can be based on a combination of policyholder’s sum insured and type of hospital. A division bench comprising Chief Justice Mohit Shah and Justice MS...