Rupee has appreciated sharply
The rupee has appreciated by almost Rs 2, from a level of Rs 55.40 to levels of Rs 53.40 on renewed selling pressure in the dollar. Foreign funds have been net buyers in equities of more than Rs 6000 crores in three trading sessions, which has ensured fresh dollar flows and a strong rupee.
Gold and jewellery has become cheaper
As the rupee has gained gold has become cheaper, since India's domestic prices depends on international gold prices. Jewellers say that gold prices by the end of last week had dropped by almost Rs 250 at the retail level. Any further appreciation in the rupee will make gold even cheaper, as long as international prices of gold stay steady.
India's crude basket has dropped sharply, making oil imports cheaper
India's crude basket which was at Rs 6303 for the fortnight September 1-15, has dropped to Rs 5800 as on September 20, 2012. The drop has come on account of the gains in the rupee and also on account of a drop in the value of crude prices internationally.
Investor wealth has surged
Investor wealth has surged following the reforms process as the stock markets have gained almost 4%, following the reforms announcements.
This has led to increase in market capitalisation of companies and overall improvement in sentiments amongst traders and retail investors. The rally has been broadbased and the Sensex and the S&P CNX Nifty have now hit a 14-month high, thanks to the wave of reforms unleashed.