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Fund exodus, equities sell-off plunge rupee; touches new low of 74.48/$ (Roundup)

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Mumbai, Oct 11 (IANS) Exodus of foreign funds, along with an expected rise in the US interest rates and global equities sell-off plunged the Indian rupee to a fresh record low of 74.48 to a US dollar on Thursday.

However, heavy intervention by the Reserve Bank of India (RBI) and lower crude oil prices aided the rupee to recover and close at 74.13 (74.1250) to a USD.

“Heavy intervention by the RBI and a decline in international crude oil prices rescued the rupee on Thursday. The central bank aided the Indian currency to pare its morning loses,” Anindya Banerjee, Deputy Vice President for Currency and Interest Rates with Kotak Securities, told IANS.

“The fall in rupee was triggered by global equities sell-off that started from the US hit the Indian stock markets and the rupee. There is a fear of further fund outflows and this has plunged the rupee.”

The RBI is known to enter the markets via intermediaries to either sell or buy US dollars to keep the rupee in a stable orbit.

Besides, global crude oil prices which eased overnight amid a rise in US inventory helped to arrest the decline in rupee. The Brent crude oil prices stood at over $81 per barrel.

However, prices may resume their uptrend, as US sanctions on Iran begin to bite from November.

“Positive comments from government officials and Finance Ministry boosted the rupee in a tough global back drop… rupee made an intra-day high of 74.01 before closing at 74.1250,” Edelweiss Securities Head for Forex and Rates Sajal Gupta, told IANS.

“Chances of NRI bonds and FCNR (Foreign Currency Non-Repatriable) still remains an option to support the rupee and the statement that falling rupee and CAD are on top agenda of Finance Ministry boosted the rupee… they also assured that a second list for import curtailment is also being contemplated.”

At the Inter-Bank Foreign Exchange Market, the Indian rupee opened at 74.31 to a dollar and soon slipped to 74.46 to a greenback — the lowest-ever it has touched due to a massive equities sell-off and foreign fund outflows.

In addition to global equities slump, concerns that the US Federal Reserve would continue to tighten interest rates amid strengthening economy and labour market also sparked fears about capital outflows, hurting the rupee.

“The rupee continues to make a new record low, as the global and domestic equities experienced a steep sell-off. Continued FII outflows from debt and equity market is keeping sentiments bearish,” said Rushabh Maru, Research Analyst at Anand Rathi Shares and Stock Brokers.

On Thursday, provisional data with the exchanges showed that foreign institutional investors sold stocks worth Rs 2,869.41 crore.

In the last eight sessions beginning October 1, FIIs have sold shares worth about Rs 17,000 crore.

–IANS
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Dr. Abhishek Verma Dedicates a Shelter in Memory of His Mother, Veena Verma, at KGMU; Inaugurated by Daughter Nicolle Verma

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World-renowned business tycoon Dr. Abhishek Verma has supported Foodman Vishal Singh’s Hunger-Free World mission. In memory of his mother, Late Veena Verma, who was a 3 term Rajya Sabha MP.

Dr. Verma dedicated a state-of-the-art free permanent shelter for the attendants of patients at KGMU Medical University, Lucknow, under the aegis of Vijay Shree Foundation. His daughter, Nicolle Verma, inaugurated the shelter.

During the event, Foodman Vishal Singh honored Nicolle Verma by presenting her with a memento. Mrs. Nidhi Sharma and Avantika Yadav, associated with the organization, welcomed her with garlands. Following this, Nicolle Verma distributed essential items to the attendants and also handed out fruits. She became emotional remembering her grandmother on her birth anniversary.

On this occasion, she also inaugurated the “Veena Verma Sevalaya” in memory of her grandmother, Veena Verma, to serve the attendants. She expressed, “I feel proud that my family is engaged in nation-building as well as social service. Today, in collaboration with Vijay Shree Foundation founder Foodman Vishal Singh Ji, I feel immensely proud to dedicate this shelter for the poor, helpless, and needy attendants of patients battling serious illnesses like cancer. I am honored to be associated with the Hunger-Free World Mission for humanity.”

Inspired by the continuous humanitarian service provided by Vijay Shree Foundation over the past 17 years, Nicolle Verma donated 10 lakh rupees to support the cause. The purpose of this donation is to ensure that services continue for the needy attendants of patients suffering from severe illnesses in hospitals, as facilitated by Foodman Vishal Singh.

It is noteworthy that Dr. Abhishek Verma’s family has a legacy of public and philanthropic service. They are helping millions to carry forward the values and service work of their parents. On the occasion of his mother’s birth anniversary, Dr. Abhishek Verma dedicated this state-of-the-art permanent shelter at Lucknow Medical College to serve the attendants of patients through the Vijay Shree Foundation.

Supporting Foodman Vishal Singh’s Hunger-Free World mission, Dr. Abhishek Verma assured that he would continually support keeping this flame of humanity alive. He also promised to assist in providing medicines to the helpless patients.

Continuing her grandmother’s legacy of service, Nicolle Verma personally served food to the needy patients and attendants. She said, “It is our good fortune to have received the joy of doing this noble work today through Foodman Vishal Singh. I have taken another step forward in carrying my family’s values and cooperation by joining hands with the Vijay Shree Foundation. My father taught me to serve and help the needy, and I feel happy when I bring a smile to someone’s face.”

On the birth anniversary of the late Veena Verma, the event organizer, Vijay Shree Foundation founder Foodman Vishal Singh, said, “We feel proud and happy that Dr. Abhishek Verma, a globally renowned business tycoon, has extended his support to uplift our country from the hunger index. Today, on his mother’s birth anniversary, he inaugurated a state-of-the-art permanent shelter at Lucknow Medical College, which will always be helpful for the needy attendants of patients. It is a pleasure for me and the organization to receive the affection of Mr. Verma.”

The event was attended by General Manager Verma Family Office Hemant Garg, Sonu Rajput, and the organization’s volunteers, including Sandeep Singh, Parmeshwar Ji, Prashant Rao Gautam, Balram Singh, Ramesh Chaudhary, Suman, Jeetu, Anil, Suraj, Vinay, Manish Bhadauria, Manas Mehrotra, Vivek, Apurv, Happy, and others.

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