Economic crisis in India 2013 | ALL Updates & News

[Roybot]

Didn't you read @Aeronaut 's post in the sticky thread?

 

[by78]

Didn't you read @Aeronaut 's post in the sticky thread?

No. What did it say?

 

[Roybot]

This thread has been stuck- DON'T Post new threads on Indian economy slowing down - or Infractions will follow.....All news are to be posted HERE ONLY!

No. What did it say?

Here you go.

 

[by78]

Sensex slips in red; rupee falls below 64/$ despite RBI steps - The Economic Times

Sensex slips in red; rupee falls below 64/$ despite RBI steps

By ECONOMICTIMES.COM | 21 Aug, 2013, 02.09PM IST

Sensex pared intraday gains and slipped in the negative terrain as “weak hands” sold off their long positions in the short covering rally.
MUMBAI: The S&P BSE Sensex pared intraday gains and slipped in the negative terrain as "weak hands" sold off their long positions in the short covering rally. Traders were seen booking profits in banks which had led the upmove following the fresh measures from Reserve Bank of India to ease liquidity.

Meanwhile, the rupee was under pressure for fifth straight session on the back of dollars outflows. The partially convertible rupee was at 64.02 down 76 paise against its previous close.

According to analysts, the market is not likely to fall sharply from current levels as most of the negatives seems to have been priced in. Investors should start nibbling at bluechip stocks available at attractive valuations. The market is likely to consolidate in the near term after the US Federal Reserve's minutes on bond programme are released.

At 01:30 p.m.; the 30-share index was at 18,170.51, down 75.53 points or 0.41 per cent. It touched a high of 18,567.70 and a low of 18,104.47 in trade today.

The Nifty was at 5,376.20, down 25.25 points or 0.47 per cent. It touched a high of 5,504.10 and a low of 5,361.10 in trade today.

The S&P BSE Midcap Index was up 0.03 per cent and BSE S&P Smallcap Index gained 0.27 per cent.

Among the sectoral indices, the S&P BSE Bankex was up 1.28 per cent, the S&P BSE Realty Index was 0.41 per cent higher and the S&P BSE Capital Goods Index gained 0.36 per cent.

The S&P BSE Meta Index was down 1.62 per cent, the S&P BSE FMCG Index was down 1.45 per cent and the S&P BSE IT Index was 1.16 per cent lower.

The beaten down banks got a breather from the Reserve Bank of India's fresh measures of ease liquidity.

According to JP Morgan report, the Indian financial sector should bottom out after the RBI's strong moves on capping bond yields. However, the immediate rebound will be impacted by some key negative factors such as slowing growth, currency volatility, continued imbalance between CAD and capital inflows, possible Fed tapering and pressure from oil prices.

Sterlite Industries (3.91 per cent), Sun Pharma (3.09 per cent), ITC (2.31 per cent), Dr Reddy's Laboratories (2.29 per cent) and Infosys (2.21 per cent) among the losers pack.

BHEL (4.33 per cent), HDFC (2.59 per cent), HDFC Bank (2.42 per cent), Tata Power (2.04 per cent) and Jindal Steel (1.13 per cent) were among the top Sensex gainers.

The market breadth was positive on the BSE with 1,049 gainers against 1,028 losers.

The foreign institutional investors sold shares worth Rs 1,424.32 crore while domestic institutional investors were net buyers worth Rs 1,066.15 crore on Monday as per the provisional data from the National Stock Exchange.

Here you go.

Ah, gotcha. Will do.

 

[Chinese-Dragon]

Honestly, the Indian government might as well save their limited Forex reserves instead of trying to save the currency.

Even countries like Switzerland and Japan failed in their currency interventions. After all the money they spent, their currencies just went back to pre-intervention levels.

No half-measures are going to work in this kind of currency intervention.

If you're not willing to go full-measures, then you might as well just save your Forex from being wasted.

 

[Lightningbolt]

Just give it up India. It's all over for you.

 

[drunken-monke]

I'm extremely happy seeing the Rupee and the Indian economic story collapse. Nobody deserved it more than India. They boast way too much and now it's come back to bite them on the backside.

Indians are extremely arrogant and obnoxious people, this economic collapse will definitely shut some of these jingoistic Indians up.

I hope (from whole heatedly) that this type of situation shouldn't come to China..

While I accept your comments as eye opener(before Indian economy gets flattened out), suggest you not to categorize all Indians the way you have..

 

[by78]

Just give it up India. It's all over for you.

Let's not be so harsh. It's not all over just yet, since the Rupee still has some downward travel left. My put position on the Rupee is at 70. I wager it's reachable within two weeks. The question is whether I should cash out and move on or plow back in and reset put position at 75.

Interesting times...

 

[Roybot]

Honestly, the Indian government might as well save their limited Forex reserves instead of trying to save the currency.

Even countries like Switzerland and Japan failed in their currency interventions. After all the money they spent, their currencies just went back to pre-intervention levels.

No half-measures are going to work in this kind of currency intervention.

If you're not willing to go full-measures, then you might as well just save your Forex from being wasted.

The Congress government is just taking stop gap measures till the elections(early next year). They know their chance of comeback is very slim and will leave the BJP with a sick economy.

These assholes will do anything to be in power, the hell with the economy and the country.

 

[Sedqal]

US Dollar / Indian Rupee FX Spot Rate - INR= - Stock Quotes

Oh, it just crashed through 64, now trading at 64.02.

Wow, look how fast its going down.

 

[Chinese-Dragon]

The Congress government is just taking stop gap measures till the elections(early next year). They know their chance of comeback is very slim and will leave the BJP with a sick economy.

These assholes will do anything to be in power, the hell with the economy and the country.

What if Congress leaves the next Congress government with a sick economy?

Luckily for you guys, at the end of the day, elections are usually decided by the health of the economy. Given the current economic situation, there is a real chance that Congress won't be re-elected.

 

[by78]

Honestly, the Indian government might as well save their limited Forex reserves instead of trying to save the currency.

Even countries like Switzerland and Japan failed in their currency interventions. After all the money they spent, their currencies just went back to pre-intervention levels.

No half-measures are going to work in this kind of currency intervention.

If you're not willing to go full-measures, then you might as well just save your Forex from being wasted.

I don't think they are contemplating sustained currency intervention using forex reserves, which are very meager and far short of what is required to defend the currency.

India has at least $170 billion of sovereign debt maturing in the next year. Assuming the worst case scenario whereby creditors refuse to roll over, then India would be left with almost nothing.

Instead, I think their strategy, if there is one, is to use the reserves to buy more time so they can raise more funds, either via sovereign bond sales or issuing 'Desi Bonds' to attract NRI savings.

Regardless, they'd better move fast before the reserves deplete AND before sovereign bond yields become too high. I'd imagine investors would be demanding 1) bonds be inflation linked, and 2) they are repaid in dollars. Ouch.

Moreover, I'm also worried about India's corporate debt market. During Rupee's heady days, when it was 45 to the dollar, Indian corporations took out very large loans that must be repaid in dollars. They took on the debt thinking that Rupee was only going to go up. They were wrong. This is a textbook case of currency arbitrage gone horribly wrong.

 

[Sedqal]

I don't think they are even contemplating currency interventions using their forex reserves, which are very meager and far short of what is required to defend the currency.

India has at least $170 billion of sovereign debt maturing in the next year. Assuming the worst case scenario whereby creditors refuse to roll over, then India would be left with almost nothing.

Instead, I think their strategy, if there is one, is to use the reserves to buy more time so they can raise more funds, either via sovereign bond sales or issuing 'Desi Bonds' to attract NRI savings.

Regardless, they'd better move fast.

However, I'd be far more worried about India's corporate debt market. During Rupee's heady days, when it was 45 to the dollar, Indian corporations took out very large loans that must be repaid in dollars. They took on the debt thinking that Rupee was only going to go up. They were wrong...

What a classic case of currency arbitrage gone horribly wrong.

Pakistani onions must be making a killing

 

[Roybot]

What if Congress leaves the next Congress government with a sick economy?

Luckily for you guys, at the end of the day, elections are usually decided by the health of the economy. Given the current economic situation, there is a real chance that Congress won't be re-elected.

Then we are fcked

 

[rustam90789]

What if Congress leaves the next Congress government with a sick economy?

Luckily for you guys, at the end of the day, elections are usually decided by the health of the economy. Given the current economic situation, there is a real chance that Congress won't be re-elected.

There is a real possibility that the next central government of india in delhi could be both non-congress and not-BJP. The regional parties in india are gaining a lot of strength and it is quite possible that a third force in the form of a coalition of regional small parties may occupy the seat in delhi which means an even more fragile government and policy paralysis in future.