On March 12, 2019 (Tuesday), the Indian rupee gained 18 paisa against US dollar to close at 69.71 on account of the following factors –

  • investment in the Indian market by foreign investors due to:
    • growing risk appetite;
    • pricing on the second term for the NDA led Government
  • weaker US Dollar currency in overseas market i.e. weaker USD against other foreign currencies

With inflation below RBI’s target and a weakened growth profile, Central bank’s monetary policy committee (MPC) is expected to cut repo rate by 25 basis points in its April meeting. This might help to spur growth momentum in the economy.

  • On Monday, the Indian rupee advanced by 25 paise has closed at 69.89 against the US dollar.
  • Continuous stable trade of Oil and Brent Crude Oil prices in sideways range and foreign funds in the domestic equity market have been aiding the rupee to remain strong.
  • The outlook is expected to continue to remain positive for the Indian rupee.
  • Cement prices have increased due to infrastructure growth. The price of a bag has increased by INR 15-INR 20 to INR 310 to INR 315.
  • The price in Southern and Western regions has increased by 15% while country’s average was 6%.
    It is expected that prices may firm up a little in April 2019.
  • As the mining operations in the municipal area of Chittorgarh city in Rajasthan are suspended, the share value of Birla Corporation has decreased by 14% on the BSE within a day trade.
  • NGT directed the state’s pollution control board, the director of Rajasthan’s mining department and the collector of Chittorgarh to stop all mining within 10 km of the Bassi Wildlife Sanctuary or within eco-sensitive zone.
  • The ban on mining had affected the performance of the company, necessitating the sourcing of part of the limestone requirement at significantly higher prices.
  • After the rationalisation of the rates for under-construction and affordable houses, a meeting of Goods and Services Tax Council is scheduled to be held on March 19, 2019.
  • In the meeting, guidelines and rules for the changed GST rates, for the under-construction houses are to be finalised.
  • These guidelines would specify the extent to which the builders can use the input-tax credit from April 1, 2019 onwards and provide methodology to deal with residential and commercial properties.
  • It is unlikely that the decision on bringing about parity in GST rates on Government and private lottery shall feature in the upcoming GST council meeting.