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Shares of Anil Ambani-led group firms -- <keyword id="20367971" type="General" weightage="20" keywordseo="reliance-home-finance" source="keywords">Reliance Home Finance</keyword> Ltd, <keyword id="6360089" type="General" weightage="20" keywordseo="Reliance-Power" source="Orion">Reliance Power</keyword> and <keyword id="46907" type="General" weightage="20" keywordseo="Reliance-Communications" source="Orion">Reliance Communications</keyword> -- hit their <keyword id="10112182" type="General" weightage="20" keywordseo="lower-circuit-limits" source="Orion">lower circuit limits</keyword> on Monday as investors continued to desert the counters after markets regulator <keyword id="19901201" type="General" weightage="20" keywordseo="Sebi" source="keywords">Sebi</keyword> barred the industrialist and 24 others from the securities market for five years on charges of diversion of funds from <keyword id="19936674" type="General" weightage="20" keywordseo="Reliance" source="keywords">Reliance</keyword> Home Finance Ltd. The stock of Reliance Power dropped 4.99 per cent to hit the lower circuit limit of Rs 32.73 on the BSE. Shares of Reliance Home Finance Ltd tumbled 4.93 per cent to Rs 4.24 -- the lowest trading permissible limit for the day. Reliance Communications dived 4.92 per cent to touch the lower circuit of Rs 2.32. Reliance Infrastructure also declined 2.90 per cent to Rs 205.55. Shares of Reliance Infrastructure, Reliance Home Finance and Reliance Power had slumped on Friday also. Sebi has imposed a penalty of Rs 25 crore on Ambani and restrained him from serving as a director or Key Managerial Personnel (KMP) in any listed company or Sebi-registered entity for five years. Besides, a fine ranging Rs 21 crore to Rs 25 crore has been levied on 24 entities. Also, the regulator barred Reliance Home Finance from the securities market for six months and slapped a fine of Rs 6 lakh on it. After receiving multiple complaints alleging the diversion/siphoning of funds of Reliance Home Finance Ltd, Sebi conducted an investigation for the period of FY 2018-19 to ascertain any regulatory violations. In its probe, Sebi found that <keyword id="19902194" type="General" weightage="20" keywordseo="Anil-Ambani" source="keywords">Anil Ambani</keyword>, with the help of RHFL's KMPs -- Amit Bapna, Ravindra Sudhalkar and Pinkesh R Shah -- have orchestrated a fraudulent scheme to "siphon off" funds from RHFL by disguising them as loans to entities linked to him. Although the board of directors of RHFL had issued strong directives to stop such lending practices and review corporate loans regularly, the company's management ignored these orders. Sebi, in its 222-page order on Thursday, noted the cavalier approach by the company's management and promoter in approving loans worth hundreds of crores to companies that had little to no assets, cash flow, net worth, or revenue. This suggests a sinister objective behind the 'loans'. The situation becomes even more suspicious when considering that many of these borrowers were closely linked to the promoters of RHFL. Eventually, most of these borrowers failed to repay their loans, causing RHFL to default on its own debt obligations. This led to the company's resolution under the RBI Framework, leaving its public shareholders in a difficult position.

Reliance Home Finance, Reliance Power shares hit lower circuit limits

<ul><li>The combined market cap of Adani Group companies eroded by over ₹2.45 lakh crore.</li><li>This comes amid a US probe into Gautam Adani into an alleged bribe charge.</li><li>Adani has been charged over his role in an alleged scheme to pay a $250 million bribe to Indian officials.</li></ul><keyword id="20046345" type="General" weightage="20" keywordseo="Adani-Group-stocks" source="keywords">Adani group stocks</keyword> faced heavy drubbing during the morning trade on Thursday, with the combined market valuation of all the listed firms getting eroded by ₹2.45 lakh crore, as billionaire Gautam Adani has been charged by US prosecutors. Adani has been charged over his role in an alleged years-long scheme to pay a $250 million bribe to Indian officials in exchange for favourable terms for solar power contracts. The stock of the group's flagship firm Adani Enterprises plunged 22.99%, Adani Ports dived 20%, Adani Energy Solutions tanked 20%, Adani Green Energy plummeted 19.53% and Adani Total Gas tumbled 18.14% on the BSE. Shares of Adani Power slumped 17.79%, Ambuja Cements cracked 17.59%, ACC fell 14.54%, NDTV dropped 14.37% and Adani Wilmar declined 10%. Some of the group firms also hit their lowest trading permissible limit or lower circuit for the day. The combined market capitalisation (mcap) of all the ten listed group firms eroded by ₹2,45,016.51 crore during the morning deals. In the equity market, the BSE benchmark Sensex traded 536.89 points lower at 77,041.49 and the NSE Nifty quoted 186.75 points down at 23,331.75. US prosecutors charged Adani, 62, his nephew Sagar and other defendants for paying over $250 million in bribes between 2020 and 2024 to Indian government officials to win solar energy contracts on terms that could potentially bring in more than $2 billion in profit. This, they alleged, was concealed from the US banks and investors from whom the Adani group raised billions of dollars for the project. The complaint charges them with violating the antifraud provisions of the federal securities laws and seeks permanent injunctions, civil penalties, and officer and director bars. US law allows pursuing foreign corruption allegations if they involve certain links to American investors or markets. The Adani group did not immediately respond to requests for comments. "The defendants orchestrated an elaborate scheme to bribe Indian government officials to secure contracts worth billions of dollars," Breon Peace, US Attorney for the Eastern District of New York, which brought the case, said in a statement. Adani, chairman of the ports-to-energy Adani Group, his nephew Sagar R Adani, who is an executive director at the conglomerate's renewable energy arm Adani Green Energy Ltd, and its former CEO Vneet Jaain were charged with securities fraud, securities fraud conspiracy and wire fraud conspiracy. The Department of Justice alleged that on several occasions, Adani personally met with an Indian government official to advance the bribery scheme, and the defendants held in-person meetings with each other to discuss aspects of its execution. With inputs from agencies. SEE ALSO: <a href="https://www.businessinsider.in/tech/mobile/news/redmi-a4-5g-with-120hz-display-launched-starting-at-8499/articleshow/115479469.cms">Redmi A4 5G with 120Hz display launched starting at ₹8,499</a> <a href="https://www.businessinsider.in/tech/mobile/news/android-16-developer-preview-announced-new-features-timeline-and-everything-you-need-to-know/articleshow/115476441.cms">Android 16 Developer Preview announced – new features, timeline and everything you need to know</a> <a href="https://www.businessinsider.in/tech/news/indian-wearables-market-declines-20-7-in-q3-2024-smartwatch-and-earwear-categories-struggle/articleshow/115447720.cms">Indian wearables market declines 20.7% in Q3 2024, smartwatch and earwear categories struggle</a>

Adani group stocks' combined market cap erodes by ₹2.45 lakh crore, Adani Enterprises tanks 23%

Foreign investors have withdrawn nearly Rs 20,000 crore from Indian stock markets in just five trading days (November 4–8), continuing a trend of large-scale selling that began last month. Experts say investors are now moving their money to China, largely due to the high valuations presently prevailing in Indian markets. In early November, FPIs have offloaded as much as Rs 19,994 crore in Indian markets. The month prior, i.e., October, was one of the worst months in terms of foreign outflows, with FPIs making a net withdrawal of Rs 94,017 crore. Before this, Indian markets faced such a situation during the pandemic, when FPIs withdrew Rs 61,973 crore from equities in March 2020. <h2>Why Are Investors Leaving? </h2>According to Himanshu Srivastava of Morningstar Investment Research India, two main factors are driving this exodus. First is China's renewed appeal due to lower stock valuations and new economic stimulus measures. In a bid to nudge the domestic economy and bail state governments, China recently approved a 10-trillion yuan (US $1.4 trillion) package. Per reports, approximately 60% of this stimulus focuses on allowing local governments to refinance the mountain of debt on them. Srivastava explains foreign investors are also flocking to US dollar and Treasury yields, which have appreciated significantly in the recent past, leading FPIs to anticipate a stronger US economy going ahead. Moreover, high valuations in Indian markets are discouraging foreign investors from putting more money in the economy. As a result, over the past week, the selling pressure eroded Rs 74,563 crore in market value for Reliance Industries, while Bharti Airtel and ICICI Bank lost Rs 26,274 crore and Rs 22,254 crore, respectively. The combined market valuation of six of the top 10 most-valued firms dipped by Rs 1,55,721.12 crore last week. <h2> Silver linings</h2>Despite the ongoing outflux of funds since last month, November also saw unprecedented applications of about 40–50 new FPI registrations, which are eyeing to enter the Indian market. This was due to markets SEBIs recent relaxation to NRIs, permitting them to participate up to 100% and announcing measures for ease of entry and operations in India. On the other hand, FPIs invested Rs 599 crore in the debt general limit and Rs 2,896 crore in the debt voluntary retention route (VRR) during the period under review. So far this year, FPIs have invested Rs 1.06 lakh crore in the debt market. <li class="whitespace-normal break-words"></li>Going ahead, investors will be looking for certain macroeconomic cues, which include corporate earnings reports, India's inflation (CPI) and industrial production (IIP) data on November 12, the US inflation report on November 13, and wholesale price index (WPI) data on November 14.

FPIs withdraw nearly Rs 20,000 crore from equities in the last 5 trading sessions, make a beeline for China and US

New Delhi: <keyword id="19900795" type="General" weightage="20" keywordseo="foreign-investors" source="keywords">Foreign investors</keyword> pulled out a massive Rs 94,000 crore (around USD 11.2 billion) from the Indian <keyword id="19925636" type="General" weightage="20" keywordseo="stock-market" source="keywords">stock market</keyword> in October, making it the worst-ever month in terms of outflows, triggered by the elevated valuation of domestic equities and attractive valuations of <keyword id="20295104" type="General" weightage="20" keywordseo="Chinese-stocks" source="keywords">Chinese stocks</keyword>. Before this, foreign portfolio investors (FPIs) withdrew Rs 61,973 crore from equities in March 2020. The latest outflow came after a nine-month high investment of Rs 57,724 crore in September 2024. Since June, FPIs have consistently bought equities after withdrawing Rs 34,252 crore in April-May. Overall, FPIs have been net buyers in 2024, except for January, April and May, data with the depositories showed. Looking ahead, the trajectory of global events like geopolitical developments, interest rate movements, progress in the Chinese economy and the outcome of the US Presidential election will play a crucial role in shaping future foreign investment in <keyword id="20014814" type="General" weightage="20" keywordseo="Indian-equities" source="keywords">Indian equities</keyword>, Himanshu Srivastava, Associate Director, Manager Research, Morningstar Investment Research India, said. On the domestic front, key indicators like inflation trajectory, corporate earnings, and the impact of festive season demand will also be closely watched by FPIs as they assess opportunities in the Indian market, he added. According to the data, FPIs recorded a net outflow of Rs 94,017 crore in October. The intensity of net outflows could be gauged from the fact that except for one day, FPIs were net sellers throughout the month, bringing their total investment for 2024 down to Rs 6,593 crore. This relentless selling resulted in about an 8 per cent decline in benchmark indices from their peaks. Several factors contributed towards this massive withdrawal of foreign capital from the Indian equity markets in October. The major among them is the elevated valuations of Indian equities. This has triggered a shift in investments towards China, where valuations are currently more attractive. Additionally, a series of stimulus measures, aimed at bolstering Chinese economic growth has made Chinese equities increasingly appealing to global investors, Srivastava said. Despite the massive FPI selling in financials, this sector is resilient since the valuations are fair and every selling is being absorbed by DIIs and individual investors, particularly HNIs, VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said. In addition, FPIs pulled out Rs 4,406 crore from the debt general limit and invested Rs 100 crore from the debt Voluntary Retention Route (VRR) during the period under review. So far this year, FPIs invested Rs 1.06 lakh crore in the debt market.

FPIs withdraw record Rs 94,000 cr from Indian equities in Oct on attractive Chinese valuations

Since 2013, <a target="_blank" href="https://www.businessinsider.com/elon-musk">Elon Musk</a> has promised that <a target="_blank" href="https://www.businessinsider.com/tesla">Tesla</a> will have a <a target="_blank" href="https://www.cnn.com/2013/09/18/business/tesla-self-drive-car/index.html">self-driving car</a>. To get there, the company has leaned on a specialized group of test drivers who are part of what's known internally as "Project Rodeo."Test drivers on Project Rodeo say they push the company's self-driving software to its limit. They work to bridge the gap between driver-assist software and fully autonomous driving. Operating on open streets with other vehicles, cyclists, and pedestrians, they have tested unreleased software that will be crucial to Tesla's push into autonomous driving.Test drivers said they sometimes navigated perilous scenarios, particularly those drivers on Project Rodeo's "critical intervention" team, who say they're trained to wait as long as possible before taking over the car's controls. Tesla engineers say there's a reason for this: The longer the car continues to drive itself, the more data they have to work with. Experts in self-driving tech and safety say this type of approach could speed up the software's development but risks the safety of the test drivers and people on public roads."The idea is that you're a cowboy on a bull and you're just trying to hang on as long as you can," a former test driver who trained for the critical-intervention team in San Francisco said.Business Insider spoke with nine current and former Project Rodeo test drivers and three Autopilot engineers in states including California, Texas, and Florida. The drivers worked on training Tesla's Full Self-Driving software and its Autopilot software, which, despite the products' names, require a licensed driver at the wheel. Most asked to remain anonymous, citing a fear of professional reprisal, but their identities are known to Business Insider. Eight of the drivers described experiences that occurred over the past year, mostly between November and April.<div type="image" title="tesla cars in a parking lot" height="2827" width="4195" msid="114814069" hostid="261" sizebytes="1645262"></div>None of the test drivers who spoke with BI said they had been involved in a crash.Five who worked for the company in 2024 said they narrowly avoided collisions, including almost hitting a group of pedestrians. One former critical-intervention driver in Texas told BI that they sometimes ventured into their city's bar district late at night to see how Tesla's FSD software reacted to drunk patrons spilling out after last call. The former driver in San Francisco recalled riding around Stanford University during training, testing how close FSD would allow the vehicle to get to people at crosswalks before they had to take over. And a third critical-intervention driver said they allowed the car to speed through yellow lights and drive 35 mph under the speed limit on an expressway to avoid disengaging the system.A former Autopilot engineer told BI that while testing is done on open roads, Tesla runs hundreds of simulations and sometimes tests difficult scenarios on a closed course before rolling out new software to test drivers' vehicles.Tesla did not respond to a detailed list of questions about Project Rodeo and its self-driving technology.The test drivers' experiences highlight the balancing act Tesla and other automakers face as they prepare their self-driving software for widespread consumer use.Experts say public testing is crucial and can help identify safety issues before the technology hits the market. Missy Cummings, a former safety advisor for the National Highway Traffic Safety Administration, said that while practices vary, she believes many autonomous-vehicle companies likely employ tactics similar to Tesla's."In theory, these drivers have gone through training, and eventually these cars do need to be able to operate in the public domain," Cummings said. She added that clearly marked vehicles could help the public better identify test drivers.Safety experts say fragmented and limited autonomous-vehicle regulations, coupled with self-reporting by automakers, create a complex environment where companies balance public safety with getting their products ready for commercial use."There are very few rules around autonomous testing and a lot of dependency on self-reporting," said Mark Rosekind, a former NHTSA administrator and chief safety innovation officer for Zoox, an Amazon-owned autonomous-taxi firm. "If companies aren't reporting, it's hard to know what's going on."In the past decade, authorities have investigated several automakers, including Tesla, Waymo, and Cruise, over crashes involving self-driving or driver-assist software.<div type="image" title="elon musk looks at a tesla" height="3488" width="4868" msid="114814075" hostid="261" sizebytes="1020846"></div>A lot depends on Tesla's promise of autonomous driving; Musk said <a target="_blank" href="https://www.businessinsider.com/elon-musk-tesla-worth-basically-zero-without-self-driving-2022-6">in 2022</a> that self-driving was "really the difference between Tesla being worth a lot of money or worth basically zero." The Morgan Stanley analyst Adam Jonas wrote in a <a target="_blank" href="https://www.businessinsider.com/tesla-robotaxi-release-date-elon-musk-stock-price-2024-9">note</a> last month that the company's future valuation was "highly dependent on its ability to develop, manufacture, and commercialize autonomous technologies." Tesla's stock fell by 10% on October 11, the day after the company's robotaxi event. <a target="_blank" href="https://markets.businessinsider.com/news/stocks/tesla-stock-price-q3-earnings-elon-musk-profit-margins-guidance-2024-10">It rebounded after Tesla reported earnings on October 23</a>, and it's up by more than 3% overall in the year to date.<h2 id="e24440fb-f024-4003-b2a2-7b4d055c8c7a">Inside the day-to-day of a Project Rodeo driver</h2>Tesla went on a hiring spree this year, bringing on test drivers in at least half a dozen US cities, a review of LinkedIn profiles suggests.A <a target="_blank" href="https://www.businessinsider.com/tesla-job-openings-seasonal-test-drivers-data-capture-2023-7">job listing from 2023</a> said test drivers needed a "clean driving record, safe driving habits, and a minimum of 4 years of licensed driving experiences." Eight drivers told BI that the onboarding process included two to three weeks of hands-on training, including test drives with a trainer in the passenger seat.According to employees and internal documents, one specialty within Project Rodeo works to replicate the job of a ride-hailing driver by picking random points on a map and driving between them. Those working on a different team, known as the "golden manual" team, drive manually, without any assistance, to train FSD software on what by-the-book, error-free driving looks like.Critical-intervention test drivers, who are among Project Rodeo's most experienced, let the software continue driving even after it makes a mistake. They're trained to stage "interventions" — taking manual control of the car — only to prevent a crash, said the three critical-intervention drivers and five other drivers familiar with the team's mission. Drivers on the team and internal documents say that cars rolled through red lights, swerved into other lanes, or failed to follow posted speed limits while FSD was engaged. The drivers said they allowed FSD to remain in control during these incidents because supervisors encouraged them to try to avoid taking over.The critical-intervention drivers recalled multiple instances where they felt unsafe but believed intervening could put their jobs at risk. The former driver in Texas recalled taking over only after FSD nearly rammed the car into the side of a vehicle stopped at an intersection.Non-critical-intervention drivers said they also felt pressure to push the system as far as possible. Five current and former employees said that they were instructed to intervene if they became uncomfortable with the software's behavior but that they sometimes received feedback from their supervisors if they were considered to have disengaged too early.John Bernal, a former test driver and data analyst at Tesla, said test drivers dealt with risky situations as far back as 2022. (Bernal was terminated that year; he said he was fired for sharing videos on his YouTube channel that showed his personal Tesla malfunctioning while using FSD.) He described instances where he broke traffic laws in order to collect data. Bernal said that his supervisors never instructed him to break the law but that he sometimes felt it was the only way to get the data the company wanted.He recalled one test in 2022 that was designed to see how well the system recognized a red light."My training was to wait until the wheels touched the white line before I could slam on the brakes," Bernal said. He said he sometimes ended up in the middle of the intersection if the system didn't work correctly.He also worked to train the autonomous software on "vulnerable road users" — defined by the Department of Transportation as pedestrians, bicyclists, people on scooters or in wheelchairs, or highway workers on foot — when he manually drove the "Ground Truth Machine," a Tesla outfitted with lidar and radar sensors to help the system map and identify objects."I'd drive over double lines to get close to a bike," Bernal said. "I would go obnoxiously slow through an alleyway where drunk people were, and I would be extremely rude and get really close to people."<div type="image" title="tesla showroom with autopilot posters" height="2939" width="4200" msid="114814073" hostid="261" sizebytes="255868"></div>Two years later, test drivers were asked to train the system near pedestrians, test drivers said. Five recalled a bug with FSD that made vehicles brake too early at crosswalks. To improve its performance, they were instructed to interact with pedestrians as frequently as possible.Sometimes, the drivers said, the software would slam on the brakes when no one was at the crosswalk; other times, it wouldn't stop at all. According to Tesla employees and internal documentation, FSD's performance depended heavily on its software version, and the versions appeared to operate at different levels of caution.The former San Francisco driver said that as they drove around Stanford University, their trainer, another test operator with more experience on the team, chastised them for braking too early. They recalled that at one point they came within three feet of hitting a bicyclist at a roundabout."I vividly remember this guy jumping off his bike. He was terrified," the driver told BI. "The car lunged at him, and all I could do was stomp on the brakes." They said the trainer was pleased by the incident. "He told me, 'That was perfect.' That was exactly what they wanted me to do."The driver added that "it felt like the goal was almost to simulate a hit-or-miss accident and then prevent it at the last second."The former Autopilot engineer said it was better for training to see whether the software could correct itself. They also said that not intervening when the car acted abnormally — including veering into another lane or doing something that confuses another driver — was important for training. Human motorists don't always drive rationally, they explained, and the software needs to know how to respond. It's also easier to parse the data if there are fewer driver interventions, they said."At the critical juncture where it's about to make the key decision," they said, it's helpful to see whether the software makes the right or wrong call. "We want the data to know what led the car to that decision," the engineer said. "If you keep intervening too early, we don't really get to the exact moment where we're like, OK, we understand what happened."<h2 id="52098605-f887-4702-a6ab-cf47e173ce28">A 'Wild West' with little regulation</h2>Tesla is one of many automakers attempting to make autonomous vehicles a reality. Waymo, backed by Alphabet, launched the first driverless taxi service in Phoenix in 2020."In many ways, it's like the Wild West out there," said Cummings, the former NHTSA safety advisor. "There is very little regulation around training or informing the public about testing."The stakes of data collection on public roads are high. In 2018, a self-driving Uber with a person behind the wheel struck and killed a pedestrian in Arizona. Cruise paused testing after one of its driverless vehicles hit a pedestrian in October 2023. Another vehicle had already hit the pedestrian when the Cruise car struck her, dragging her 20 feet before stopping. It <a target="_blank" href="https://www.getcruise.com/news/blog/2024/cruise-resumes-manual-driving-as-next-step-in-return-to-driverless-mission/">resumed testing</a> with safety drivers in some cities in May.<div type="image" title="waymo self driving taxi interior with pedestrians outside" height="4000" width="6000" msid="114814077" hostid="261" sizebytes="568560"></div>Two former Waymo employees said that they had a team similar to Tesla's critical-intervention team but that Waymo's version of critical-intervention testing was limited to closed tracks with dummies. Two former Cruise employees said that they had mapping teams and teams that tested on closed courses and public roads but that, unlike at Tesla, those teams were instructed to take over as soon as the software went off track, and they typically tested with at least two people in the car.A Waymo spokesperson said the company's safety framework included rigorous testing in controlled environments and on public roads. A Cruise spokesperson said the company's vehicles were designed as fully autonomous systems and were therefore fundamentally different from Tesla's driver-assistance technologies.Philip Koopman, an autonomous-driving expert at Carnegie Mellon University, said that Tesla's critical-intervention approach, as described to him by BI, was "irresponsible" and that the company should be playing out all "critical scenarios" on a closed course."By allowing the software to continue misbehaving to the point a test driver needs to avoid a crash, Tesla would be imposing a risk on other road users who have not agreed to serve as test subjects," Koopman said.Alex Roy, a general partner at NIVC and a former director of operations at the autonomous-driving startup Argo AI, said companies should be correcting the software as soon as it strays from the course, particularly on public roads."You should play those mistakes out in a simulation, not on an open road," Roy said. "Real-world testing is necessary, but real-world mistakes are not." The former Tesla engineer said they doubted that computer simulations are sophisticated enough to replicate the data generated by real-world driving. The former engineer said that, to help the software improve, it was best for test drivers to avoid intervening whenever possible."If you have a parent that's holding the bike the entire time, it never gets to learn," the engineer said.Test drivers on Project Rodeo felt this keenly."You're pretty much running on adrenaline the entire eight-hour shift," one former test driver in the Southwest said. "There's this feeling that you're on the edge of something going seriously wrong."Do you work for Tesla or have a tip? Reach out to the reporter via a non-work email and device at <a target="_blank" href="mailto:gkay@businessinsider.com">gkay@businessinsider.com</a> or <a target="_blank" rel="noopener noreferrer" class="c-link">248-894-6012</a>.

Inside 'Project Rodeo,' the Tesla effort pushing the limits of self-driving technology

<ul class="summary-list"><li>US Fed Chair Jerome Powell has signaled imminent interest rate cuts, sending the US dollar lower.</li><li>Rate cuts mean lower Treasury yields, which would weigh on the US dollar.</li></ul>US Federal Reserve Chair Jerome Powell's signal of imminent interest rate cuts last week has prompted global investors to position for an easing cycle, sending the US dollar lower.On Friday, Powell said in his closely-watched speech at the central bank's Jackson Hole symposium that "the time has come for policy to adjust."His words sent <a target="_blank" class="" href="https://markets.businessinsider.com/news/stocks/stock-market-today-investors-await-jerome-powells-jackson-hole-speech-2024-8">stock markets</a> soaring on Friday, as investors interpreted his words to mean that the US economy is heading for a soft landing and that <a target="_blank" class="" href="https://think.ing.com/snaps/powell-confirms-a-september-fed-rate-cut/">September rate cuts are all but confirmed.</a>The Fed cutting rates means that Treasury yields would fall, which makes the securities less attractive to investors — in turn sending the US dollar lower.The <a target="_blank" class="" href="https://markets.businessinsider.com/index/us-dollar-index">US Dollar Index</a> fell 0.8% on Friday and is extending its decline in Monday trading. The gauge of the dollar against a basket of major currencies has fallen 3.7% so far this month.However, the dollar's weakness may be limited because US equities are doing so well, Goldman Sachs analysts in a note published on Sunday.US equities <a target="_blank" class="" href="https://www.goldmansachs.com/insights/articles/why-clients-should-stick-with-us-stocks">outperformed global markets</a> last year and are extending gains this year. The <a target="_blank" class="" href="https://markets.businessinsider.com/index/s&amp;p_500">S&amp;P 500 index</a> is up 18% year to date."On the market side, while the sensitivity of the broad Dollar to rates has increased recently, the sensitivity is also quite high to relative equity performance, and historically the Dollar has struggled to weaken in periods when US equities are outperforming the rest of the world," wrote the Goldman Sachs analysts.They added that strong US stock market performance could limit the dollar's downside over the longer term, even if the Fed is easing."The Dollar's rich valuation is in large part a consequence of a long period of superior asset market returns," they wrote."If the US economy and asset markets continue to deliver strong relative equity returns and a high risk-free rate to hedge portfolio risk, the Dollar's strength will not erode quickly or easily," they added.Last week, <a target="_blank" class="" href="https://markets.businessinsider.com/news/currencies/us-dollar-price-outlook-2030-strength-dedollarization-fears-fed-rates-2024-8">market veteran Ed Yardeni</a> also noted the correlation between the post-pandemic bull market and the strong dollar. Yardeni expects the greenback to stay strong till the end of this decade.<h2 id="8e034ee5-5337-42ea-90bb-8041e4151d7a">US debt and the presidential election are risks</h2>Even so, there are still risks to the dollar, including massive US debt and political uncertainty with the presidential election coming up in November."The growing US federal deficit is likely to come under the spotlight regardless of who wins the White House," wrote analysts from Swiss bank UBS in a <a target="_blank" class="" href="https://www.ubs.com/global/en/wealth-management/insights/chief-investment-office/house-view/daily/2024/latest-22082024.html">Monday note.</a>Goldman Sachs' analysts acknowledged there are political risks for the greenback — but they don't think the impact would hit the dollar's resilience."Though the presidential race has tightened, uncertainty about trade policy and fiscal spending may still prevent meaningful outflows from the Dollar," they added.

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Reliance Home Finance, Reliance Power shares hit lower circuit limits

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Adani group stocks' combined market cap erodes by ₹2.45 lakh crore, Adani Enterprises tanks 23%

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FPIs withdraw nearly Rs 20,000 crore from equities in the last 5 trading sessions, make a beeline for China and US

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FPIs withdraw record Rs 94,000 cr from Indian equities in Oct on attractive Chinese valuations

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Inside 'Project Rodeo,' the Tesla effort pushing the limits of self-driving technology

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