India’s Forex Reserves Decline by Rs 31,177 Crore to Rs 58.92 Lakh Crore
Karnataka News
India’s reserve position with the International Monetary Fund (IMF) saw a decline of Rs 294 crore ($35 million), bringing the total down to Rs 36,573 crore ($4.352 billion) during the latest reporting week. This came after a notable rise in the previous week, when reserves surged by Rs 1,05,784 crore ($12.588 billion) to reach an all-time high of Rs 59,23,994 crore ($704.885 billion).
The Reserve Bank of India (RBI) also reported a decrease in India’s overall foreign exchange reserves for the week ending October 4. The reserves dropped by Rs 31,171 crore ($3.709 billion), settling at Rs 58,92,472 crore ($701.176 billion). This marked a decline after the significant increase recorded earlier.
In the prior reporting period, the reserves had jumped substantially due to favorable factors, reaching a record-breaking level. Despite the recent drop, India’s forex reserves remain at a strong level, highlighting the fluctuations that are part of regular reserve management.
For the week ending October 4, foreign currency assets, which form a large portion of India’s reserves, fell by Rs 29,506 crore ($3.511 billion), bringing the total to Rs 51,48,774 crore ($612.643 billion), according to data released on Friday. These assets, when expressed in U.S. dollars, reflect changes due to the appreciation or depreciation of other currencies like the euro, pound, and yen that are part of the reserves.
Gold reserves also saw a decline during the week, decreasing by Rs 336 crore ($40 million) to Rs 5,52,606 crore ($65.756 billion), as reported by the Reserve Bank of India (RBI). In addition, the Special Drawing Rights (SDRs) dropped by Rs 1,033 crore ($123 million), bringing the total to Rs 1,54,841 crore ($18.425 billion).
India’s reserve position with the International Monetary Fund (IMF) also experienced a dip, falling by Rs 294 crore ($35 million) to Rs 36,573 crore ($4.352 billion) during the same period, according to the RBI’s data.
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The Sensex fell by 230.05 points to close at 81,381.36, while the Nifty slipped by 34.20 points, ending at 24,964.25. The decline in both indices was primarily due to selling pressure in banking, utility, and financial stocks, as investors remained cautious ahead of key macroeconomic data releases.
In addition to domestic concerns, a mixed performance in global equity markets and continued outflows of foreign funds also dampened investor sentiment, according to traders. During the day, the 30-share BSE Sensex dropped by as much as 307.26 points, hitting a low of 81,304.15 before recovering slightly by the close. Similarly, the NSE Nifty hit an intraday low of 24,920.05.
Among the worst performers in the Sensex pack were Tata Consultancy Services, Mahindra & Mahindra, ICICI Bank, Maruti Suzuki India, Power Grid, Axis Bank, and Adani Ports & Special Economic Zones, which contributed to the day’s losses.
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On the other hand, HCL Technologies, Tech Mahindra, JSW Steel, Hindustan Unilever, Infosys, and Titan were among the gainers, providing some support to the indices.
In Asian markets, Tokyo and Hong Kong closed in positive territory, while Shanghai and Seoul ended the day with losses. European markets showed a mixed trend during mid-session trading, reflecting uncertainty across the region. Meanwhile, U.S. markets ended lower in Thursday’s overnight session, adding to the cautious sentiment among global investors.
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On Thursday, Foreign Institutional Investors (FIIs) sold equities worth Rs 4,926.61 crore, while Domestic Institutional Investors (DIIs) purchased equities amounting to Rs 3,878.33 crore, according to exchange data.
Despite the selling pressure from FIIs, the 30-share BSE Sensex managed to rise by 144.31 points, closing at 81,611.41. Similarly, the NSE Nifty gained 16.50 points, ending the day at 24,998.45, as support from DIIs helped the market stay positive.
