Indian stock market close to exiting elite trillion-dollar club

[A1Kaid]

Indian stock market close to exiting elite trillion-dollar club

By PTI | 4 Aug, 2013, 07.36PM IST


MUMBAI: As downward pressure continues on rupee and share prices, India has moved dangerously close to slipping out of the elite 14-member global league of stock markets having a trillion-dollar valuation.

Currently at $ 1.004 trillion, Indian market is managing to stick to its trillion-dollar tag by a wafer-thin margin of 0.4 per cent and may lose this status by any further fall of this small magnitude in rupee or stock valuations.

According to the data available with the stock exchanges, the total value of all listed companies in the country has retained the trillion-dollar level by a margin of less than one per cent for many days now.

However, a gap of 0.04 per cent is the smallest in the recent past. Amid weak market trends, Indian market's value fell to Rs 61,36,641.52 crore at the end of last trading session on August 2, while rupee also fell to 61.10 per US dollar -- giving the stock market a dollar-valuation of USD 1.004 trillion.

Excerpt: Indian stock market close to exiting elite trillion-dollar club - The Economic Times

 

[Chanakya's_Chant]

India first entered this trillion-dollar club in June 2007, but moved out in September 2008, amid a global slowdown. It again moved back into this elite league by May 2009 and has mostly remained there since then, except for some brief periods. It may keep on like this for a couple of years.....

BTW, Pakistanis still need to wait for this celebration as the Indian rupee is likely to claw its way back to 60-levels this week helped by the recent measures taken by RBI coupled with a weak dollar after US jobs data eased concerns over early withdrawal of easy money by the US Fed.....

 

[That Guy]

India first entered this trillion-dollar club in June 2007, but moved out in September 2008, amid a global slowdown. It again moved back into this elite league by May 2009 and has mostly remained there since then, except for some brief periods. It may keep on like this for a couple of years.....

BTW, Pakistanis still need to wait for this celebration as the Indian rupee is likely to claw its way back to 60-levels this week helped by the recent measures taken by RBI coupled with a weak dollar after US jobs data eased concerns over early withdrawal of easy money by the US Fed.....

Actually, a weak Indian economy is bad for Pakistan as Pakistan has been aggressively pushing to do more business in India recently, so I don't think that Pakistan would have much to celebrate about an economically weak India.

Also, keep in mind that the reason why India is making this amount of money has more to do with it's large population than anything else.

 

[Chanakya's_Chant]

Actually, a weak Indian economy is bad for Pakistan as Pakistan has been aggressively pushing to do more business in India recently, so I don't think that Pakistan would have much to celebrate about an economically weak India.

Bilateral trade between India and Pakistan was worth $2.4 billion last year only in which Pakistan's export to India were about $513 million and Indian exports to Pakistan were about $1.84 billion....This much volume of trade wont effect either of the economies significantly...BTW what I have observed is that our Pakistani friends wont mine their economy going down than to see the Indian economy in recession....

Also, keep in mind that the reason why India is making this amount of money has more to do with it's large population than anything else.

Large population, really???? It may at first seem preposterous that greater population density might lead to better economic results and grater amount of money generated and invested in the same, Upon reflection, this proposition is not as unlikely as it sounds for a large population has its own cons which have an edge over its pros and believe in the Indian subcontinent the scenario is even worse that that too, BTW only 35% of the Indian population actively contributes to its economy but still our economy is strong enough to face the current challenges, the only problem is that amid the present political conditions the economic reforms were too late to be taken and accordingly the impact would also be seen accordingly and premier economists like Montek Singh have already said after the general elections only there would be some of the giant economic reforms in the country.....

 

[That Guy]

Bilateral trade between India and Pakistan was worth $2.4 billion last year only in which Pakistan's export to India were about $513 million and Indian exports to Pakistan were about $1.84 billion....This much volume of trade wont effect either of the economies significantly...BTW what I have observed is that our Pakistani friends wont mine their economy going down than to see the Indian economy in recession....



Large population, really???? It may at first seem preposterous that greater population density might lead to better economic results and grater amount of money generated and invested in the same, Upon reflection, this proposition is not as unlikely as it sounds for a large population has its own cons which have an edge over its pros and believe in the Indian subcontinent the scenario is even worse that that too, BTW only 35% of the Indian population actively contributes to its economy but still our economy is strong enough to face the current challenges, the only problem is that amid the present political conditions the economic reforms were too late to be taken and accordingly the impact would also be seen accordingly and premier economists like Montek Singh have already said after the general elections only there would be some of the giant economic reforms in the country.....

First of all, relax. We're only having a conversation here.

Those Pakistani friends of yours are too nationalistic, but you know what that's like as Indians tend to have the same problem. Considering the current state of affairs in Pakistan, a half billion dollar loss would dramatically affect Pakistan's stock market. Pakistan cannot afford these kinds of "minor" losses, simply because it doesn't have any large reserves to fall back on.

As for my large population comment. Well, think about it this way, even with the 35% who contribute, that is still more than any other country in the world, except for China. If India was able to increase this base by double of triple, in would easily be able to out grow China.

There is another thing, Because India has a large population, international businesses are interested in tapping this growing market. Even gaining half a percent of the market share would be a victory to them, because that still encompases 10s of millions of people. Businesses around the world are investing in India precisely because of this. If India's population was closer to Pakistan and not China, I can guarantee that there wouldn't be as much investment in India today.

 

[dray]

The global recession of 2008 was never cured completely, some temporary measures were taken by the US & EU and that produced some temporary relief. If this is one reason, the other crucial reason is the poor state of policy-making and execution by the Govt. for last 2-3 years; which is infamously known as policy-paralysis in India. Hopefully things will improve after election.

 

[gslv mk3]

Also, keep in mind that the reason why India is making this amount of money has more to do with it's large population than anything else.

mm..Then Why is India's per capita income at PPP terms,is far more than Pakistan.

 

[That Guy]

mm..Then Why is India's per capita income at PPP terms,is far more than Pakistan.

Read my other comment, here is what I said;

There is another thing, Because India has a large population, international businesses are interested in tapping this growing market. Even gaining half a percent of the market share would be a victory to them, because that still encompases 10s of millions of people. Businesses around the world are investing in India precisely because of this. If India's population was closer to Pakistan and not China, I can guarantee that there wouldn't be as much investment in India today.

why do people assume that there is only one meaning to a large population?

I'd also like to point out that the difference isn't that much. It's about a thousand $ more for India, and only because Pakistan's economy is a complete mess right now, while India's economy is thriving.

 

[IndoCarib]

we are back again !

Indian stock market regains $1 trillion mark - The Times of India

MUMBAI: Indian stock market on Thursday regained its trillion-dollar level, although by a wafer-thin margin, after keeping out of this elite league for two straight days. At the end of Thursday's trade, the total valuation of all listed companies in the country rose to USD 1.001 trillion (Rs 60,95,947 crore) on the back of appreciation in rupee as well as stock valuations

 

[cirr]

India first entered this trillion-dollar club in June 2007, but moved out in September 2008, amid a global slowdown. It again moved back into this elite league by May 2009 and has mostly remained there since then, except for some brief periods. It may keep on like this for a couple of years.....

BTW, Pakistanis still need to wait for this celebration as the Indian rupee is likely to claw its way back to 60-levels this week helped by the recent measures taken by RBI coupled with a weak dollar after US jobs data eased concerns over early withdrawal of easy money by the US Fed.....

What measures？

Like issuing more government debt（bonds）on a weekly basis at sky high interests（=high return）to attract overseas investors？

 

[Chanakya's_Chant]

What measures？

Like issuing more government debt（bonds）on a weekly basis at sky high interests（=high return）to attract overseas investors？

The government is continuously monitoring the emerging external sector developments leading to higher CAD and rupee depreciation. it has taken a slew of initiatives to boost exports and reduce imports, encourage capital flows to facilitate financing of CAD and stem the volatility in the exchange rate of the rupee. Raising the rate of interest subvention from 2 to 3 per cent that will benefit exporters and small and medium enterprises, hike in import duty on gold, liberalisation of FDI, etc.
With these efforts, the current account deficit (CAD) has declined to 3.6 per cent in the January-March quarter from 6.5 per cent in the previous quarter of 2012-13...

BTW I just missed out that the Chinese along with the Pakistanis still need to wait for this celebration.....

 

[Icewolf]

INR is still gonna keep falling

 

[Chanakya's_Chant]

INR is still gonna keep falling

It would have been better if you guys would have shown the same interest and concern for you Pakistani Rupee which is now 102.05 per $ I guess....

 

[Icewolf]

It would have been better if you guys would have shown the same interest and concern for you Pakistani Rupee which is now 102.05 per $ I guess....

PKRupee is not falling as fast as INR... Plus inflation is going down in Pakistan while exports are going up...
In Hindostan its the complete opposite

 

[Chanakya's_Chant]

PKRupee is not falling as fast as INR... Plus inflation is going down in Pakistan while exports are going up...
In Hindostan its the complete opposite

Oh really????, your currency is apparently experiencing a free fall since the new government of PML [N] assumed the charge in June. It lost approximately 4.5 per cent in the open market and 2.4 per cent in the inter-bank against US dollar during first 50 days of the present regime, indicating a trend that is likely to continue in near future.

In the latest development, the dollar-rupee parity crossed Rs101 mark in inter-bank and Rs105 barrier in open market and traded at Rs101.30 and Rs105.1 last week in the two markets, respectively. The market insiders say Pak rupee is expected to depreciate another five per cent in coming days and may hit Rs110 mark in open market while inter-bank rates will also rise in line with the growing demand of greenback.

Under the present situation on economic front, the country has no other choice, but to approach the IMF for a bail-out package to avoid an imminent default and put the economy back on track.Islamabad has to pay $3.3 billion in ongoing financial year 2013-14 and $1.3 billion in 2014-15 as interest payments on an IMF loan. The $4.6 billion payments to IMF in next two years along with other external liabilities will add to the burden on the country’s balance of payment account. The country’s current account posted a deficit of $2.299 billion to reach -0.9 per cent of the GDP in fiscal year 2012-13. At the same time the Consumer Price Index (CPI) inflation has soared to 8.3 percent in July 2013 as against 5.9 percent in June 2013, reflecting an increase of 2.4 percent, the highest one in the last 10 months....

Worsening Economic Conditions every second in your country and you still have the gall to look at India?????