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INR Touches All-Time Low, Rollout of World's Largest Health Protection Scheme Announced et al.

Professor of Financial Economics and Part-time Value Investor, Transfin.
Aug 19, 2018 1:53 PM 1 min read

End of Week Wrap-up (August 13, 2018 - August 19, 2018) #India #Rupee #Dollar #RBI #Turkey #TurkishLira #tradedeficit #oil #PM #health #healthcare #AyushmanBharat #Sensex #NIFTY50 #HangSeng #HongKong #Nikkei #China #Transfin

Editor's Comment: INR touched all-time low of 70.05 against USD amidst fears of contagion from crisis in Turkey. Closes at 70.10 by end of week. RBI's foreign exchange reserves drop by $20bn hitting $402bn to stabilise the currency.


India's trade deficit widens to 5 year high of $18.02bn driven by rising oil imports. Rise of merchandise exports by 14.3% yoy was negated by oil imports going up by 57.4% during the same period.


PM announces roll-out of nationwide health insurance scheme (Ayushman Bharat) from 25th September 2018 onwards. Scheme planned to provide basic health coverage to 500m people.


Sensex closes at 37,948 points, up 284 points with Nifty50 at new high of 11,471 points, up 86 points. Trade optimism and a fresh round of talks between US and China next week appear to be key drivers. 


Asian markets breathe easy with Hong Kong's Hang Seng rebounding by 0.5%, and Japan's Nikkei 225 advancing by similar amount on back of trade optimism and fresh round of talks between US and China scheduled for next week.


Chinese economy slows down, on the back of a two-decade low in fixed asset investments. Fixed asset investments expanded below expectations of 5.5% in January-July. Industrial output was also muted on back of pollution curbs and an uncertain trade outlook.