Stock Market
Stock market broke their range and decisively went down as there is a perception that all kind bailout packages will not be sufficient to prevent a global recession. Markets are ignoring all positive news like fall in crude oil rates, interest rates, inflation etc. and nuclear deal. Foreign investors continue to sell heavily. In case of prolonged global recession – stock markets may take many months to recover from current lows.
Dollar/Commodities
US Dollar reached its all time high of Rs 49.30. Ideal time for NRIs to send money to India as they will get more rupees per dollar sent. (Future movements of currencies cannot be predicted.) Commodities except Gold are falling at rapid pace. Gold is being seen as safe investment against global uncertainty. Rubber prices are pressure due to oil price fall.
Bank Deposits
NRI deposit holders got a lot of good news recently. Dollar reached its all time high of Rs 49.30 recently. It means more rupees for those NRIs who send Dollar (or Dollar linked gulf currencies) into India. Also RBI has increased ceiling on NRE and FCNB deposit and SBI has increased NRE and FCNB deposit rates accordingly. Due to trouble at many banks in USA/Europe - NRIs are preferring Indian Public Sector banks for parking their funds. NRIs can also opt for DTAA benefit for NRO deposit (details page 3).
NRI Interest Rates (SBI)
17st Oct '08 - Interest Rates %pa - NRE/FCNB – India's Best NRI Rates, Tax-Free, Repatriable
INR Rs USD $ Euro € GBP £ Cand $ Aust $ Yen ¥
1 year to less than 2 years 4.96 4.21 5.74 6.77 5.05 8.05 1.47
2 years to less than 3 years 4.27 3.52 4.87 5.57 3.27 6.55 1.36
3 years to less than 4 years 4.56 3.81 4.84 5.50 3.42 6.56 1.46
4 years to less than 5 years 4.56 3.95 4.87 5.46 3.55 6.61 1.55
Upto 5 years 4.56 4.14 4.87 5.43 3.67 6.59 1.62
Saving Bank Interest Rate -3.50%, NRO FD (taxable) Rates varies from 4.75 to 10.5%
.JPG)
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