Economic crisis in India 2013 | ALL Updates & News

[by78]

Wow, look how fast its going down.

It's at 64.405! My God, my put options are gonna be exercised TODAY.

 

[Kompromat]

Then we are fcked

Tit flashing contest aside, the Indian economy is taking a bad beating right now. How did it happen?

 

[SarthakGanguly]

Tit flashing contest aside, the Indian economy is taking a bad beating right now. How did it happen?

Top Finance Nerd turned 'Corruptest' PM

'No Comments'

Finance Wizard Turned God Knows What

These are the major factor among others...

 

[by78]

Equity investors are getting wiped out as we speak.

Rupee hits new life low of 64.40 per dollar, Sensex tumbles around 400 points - The Times of India

Rupee hits new life low of 64.40 per dollar, Sensex tumbles around 400 points

MUMBAI: The rupee hits fresh all-time low, trading around 64.40 per dollar as heavy dollar buying from large state-run banks along with demand from custodian banks hurt the local currency on Wednesday.

The partially convertible rupee was trading at 64.30/40 per dollar, after hitting a record low of 64.40 and down around 1.7 percent on the day.

Traders said there was no signs of RBI's intervention in the spot market so far during the session.

Sensex tumbles around 400 points

The BSE Sensex falls around 400 points and the Nifty slumps over 100 points.

The Bank Nifty is off highs, and is down 0.5 percent after earlier rising as much as 5.93 percent after the RBI eased cash and bond holding rules for banks late on Tuesday.

Book value or net worth of state-owned banks would become more opaque after the Reserve Bank of India eased bond holding rules, Morgan Stanley said in a report on Tuesday.

State Bank of India is down 1.2 percent after earlier rising as much as 5.5 percent, while ICICI Bank Ltd is down almost 2.4 percent, also retracing intra-day gains.

Falls also track lower global shares on concerns that minutes of the US Federal Reserve's July policy meeting may add to suspicions it will soon pare back on stimulus.

 

[Kompromat]

@Roybot

This is going to affect, Indian oil imports in a big way.

 

[drunken-monke]

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

Lets wait and see, if its all over for us!!!!!!

 

[by78]

Top Finance Nerd turned 'Corruptest' PM

'No Comments'

Finance Wizard Turned God Knows What

These are the major factor among others...

You forgot this dumbass, Mr. Kaushik Basu, one of the main cheerleaders of the 'demographic dividend theory'. Mr. Basu wrote in the BBC that because of its youthful population, India could just sit back and relax and watch the economy grow automatically.

Just two days ago, he comically advised the Indian government to defend the Rupee using the forex reserves. He must have been unaware of just how little reserves India has and therefore how unviable his advice was.

 

[Roybot]

Tit flashing contest aside, the Indian economy is taking a bad beating right now. How did it happen?

@Roybot

This is going to affect, Indian oil imports in a big way.

Where to start. Now we are just hoping that we can get rid of Congress in the next election and start afresh. We need to diversify the economy, improve the infrastructure, boost our manufacturing and exports, reduce current account deficit.

In the mean time we can just sit and watch the rupee crash to all time lows, things are looking pretty dismal at the moment.

 

[harpoon]

For the love of God dear MMS, kindly resign.

 

[Roybot]

For the love of God dear MMS, kindly resign.

Not needed, charging duty on the import of LCD tv is going to solve all the problems

 

[harpoon]

Not needed, charging duty on the import of LCD tv is going to solve all the problems

Even in this moment of crises, the Govt and the elitist leftists (the people I hate as much as the fundamentalists) running the Govt is obsessed with passing of Food Security Bill.

 

[by78]

Where to start. Now we are just hoping that we can get rid of Congress in the next election and start afresh. We need to diversify the economy, improve the infrastructure, boost our manufacturing and exports, reduce current account deficit.

In the mean time we can just sit and watch the rupee crash to all time lows, things are looking pretty dismal at the moment.

For the love of God dear MMS, kindly resign.

What are the chances of early elections? I only ask because I don't think the economy can withstand at least nine months of policy paralysis. I'm assuming that the new government will do better should it come to power via early elections.

India

India’s Economy Needs an Early Election - Bloomberg


(Corrects to remove dollar sign in seventh paragraph.)

A rupee in free fall; a terrifyingly wide current-account deficit; a corrupt, stagnant bureaucracy: In 1991, then-Finance Minister Manmohan Singh helped to rescue India’s economy from that near-death experience with a slew of liberalizing reforms, setting the stage for two decades of growth. Today, facing a similar, if less existential, crisis as India’s prime minister, Singh may well be the man standing in the way of a solution.

Singh did not spark the rupee’s current nose dive, which touched a record low for the third day in a row on Tuesday. U.S. Federal Reserve Chairman Ben Bernanke started the slide when he hinted that he might begin tapering the Fed’s quantitative-easing program later this year, driving up yields. International investors naturally began moving funds out of emerging markets, including India, and back to the U.S.

India, however, confronts more than a currency crisis: It’s facing a crisis of credibility. The outflow turned into a flood at the end of last week after the Reserve Bank of India announced what looked to many investors like the first tentative steps toward capital controls. Ministers have spent more time denying that any crisis exists than quelling their fears.

Half-measures meant to stem the rupee’s plunge -- such as a new 36 percent tax on imported flat-panel televisions -- are not the answer. Investors are rendering a broader judgment on South Asia’s would-be superpower. The reform process Singh inaugurated in 1991 has ground to a halt. Hundreds of infrastructure and industrial projects are again tangled in red tape. Indian businessmen -- never mind the foreign multinationals whose dollars are so desperately needed -- have no incentive to invest in new projects. Proposed industrial investments in the first five months of 2013 are off last year’s pace, which itself showed a two-thirds decline from 2011.

There are many reasons for this state of affairs, and as prime minister for the last nine years, Singh must accept his share of the blame. In its second term, his Indian National Congress-led coalition government has focused too much on doling out subsidies rather than tackling still-daunting structural reforms such as modernizing labor and land laws. On Tuesday, as the stock market continued its fall, Parliament debated a bill that would provide hundreds of millions of Indians with subsidized grain, which would add to an already ugly fiscal deficit.

Elections must be held by the end of May 2014, and the jockeying has already begun. The opposition Bharatiya Janata Party can, and no doubt will, stymie any attempts to push through controversial legislation between now and then, and Singh’s own party can’t be counted on to do much more than bribe potential voters with handouts. No one has any incentive to make tough decisions -- and no one outside the capital has any reason to believe those decisions will stand after the elections.

India can ill afford nine more months of this. There are things Singh can do now, administratively, to begin to restore confidence, such as his recent move to clear 1.7 trillion rupees’ worth of projects that had been blocked by bureaucratic inaction. He can also try to use his unique credibility to revive the narrative of reform, to explain to ordinary Indians how somewhat abstract structural measures will benefit them and not just corrupt elites.

Yet it’s hard to see how anything other than early elections will break the gridlock in New Delhi. Investors can’t be certain that any new government will push forward with difficult reforms. They know for sure, however, that the current government cannot.

Singh is a spent force. Few expect the 80-year-old prime minister to retain his office even if the Congress leads the next government. He is by all accounts an honest, humble man. His most honorable decision might be to hasten his own exit.

To contact the Bloomberg View editorial board: view@bloomberg.net.

 

[Roybot]

What are the chances of early elections? I only ask because I don't think the economy can withstand at least six months of policy paralysis. I'm assuming that the new government will do better should it come to power via early elections.

India

India’s Economy Needs an Early Election - Bloomberg

.

It is a possibility, however no one is ready for the election just yet. Not the ruling party, nor the opposition, and as long the ruling party can prove their majority in the parliament there is no other way to get rid of them.

If the free fall of rupee continues for another month or so, we ll be looking at December/January election for sure.

 

[by78]

Sensex tumbles 340 points, ends below 18,000 | Reuters

Sensex tumbles 340 points, ends below 18,000

(Reuters) - The BSE Sensex tumbled 340 points and the Nifty lost nearly 100 points as blue chip stocks slumped on fears of foreign investor selling after the rupee hit new lows ahead of a U.S. Federal Reserve report that may give details of its stimulus policy.

ITC (ITC.NS) fell 4.6 percent, while Reliance Industries (RELI.NS) ended 5 percent lower.

The Sensex fell 1.9 percent, while the 50-share Nifty ended down 1.8 percent, extending their selling streak for a fourth day, after rising nearly 2 percent on RBI steps to ease cash and bond rules.

(Reporting by Abhishek Vishnoi; Editing by Subhranshu Sahu)

BUSINESS

It is a possibility, however no one is ready for the election just yet. Not the ruling party, nor the opposition, and as long the ruling party can prove their majority in the parliament there is no other way to get rid of them.

If the free fall of rupee continues for another month or so, we ll be looking at December/January election for sure.

Actually, at current rate, the Rupee will be north of 75 in a month, maybe even over 80. That kind of loss will mean complete collapse. You should read into the Argentinian collapse of 1989. The similarities are chilling, including the ineffective measures taken to defend the currency.

 

[Guynextdoor2]

It's at 64.405! My God, my put options are gonna be exercised TODAY.

OH MY GOD- SIXTEEY FOOUURR POINT FOURR OH FIVEEE- do you even know what that means?