Home Correction trading TMS Ep268: Rupee record plunge, diesel cars, markets, algo-trading

TMS Ep268: Rupee record plunge, diesel cars, markets, algo-trading

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The Indian Rupee continued to depreciate hitting an all-time low of 81.63 against the US Dollar on Monday. And this despite the efforts of the central bank, which has spent nearly 100 billion dollars to stem the fall, the relaxation of commodity prices and the return of foreign capital. Experts believe that the fall in the rupee is in line with the massive fall in global currencies against the US dollar. Even if the fall of the rupee is not synonymous with bad news for all sectors, what will be the implications?

Rupee depreciation may also dampen the benefits that India may have gained from the recent correction in commodity prices. It is therefore unlikely that price relief for gasoline and diesel is imminent. Later, the price gap between gasoline and diesel narrowed. The price advantage enjoyed by diesel fueled the rise of diesel vehicles in the country. But this advantage is fading. And BSVI emission standards have dealt another blow to diesel vehicle sales. So what is the way forward for diesel cars in India?

Subsequently, market sentiment turned negative after the US Federal Reserve made a third major rate hike last week, with more than half of Nifty500 shares slipping below their major moving averages. So, will this decline continue or are recent sales an overreaction?

SEBI recently released guidelines for stockbrokers who provide algorithmic trading services. And its chairman Madhabi Puri Buch said last week that the regulator was neither for nor against algo trading as long as there is “transparency and disclosure”. But what is algo trading? Listen to this episode of the podcast to learn more.