It was just a week that Anil Ambani’s IPO on his dream project Reliance Power saw a record high of investors pouring in their money within the first hour of its opening. The India Inc had all the reasons to smile.
But Tuesday was not the same, as the Bombay Stock Exchange, Asia’s oldest stock exchange fell below the circuit limit of 10 percent, suspending the trading for an hour within minutes of its opening. Despite a short recovery by yesterday noon, the markets came invitingly close to 15 percent circuit hitting its intra-day low at 15,332 – down by 2,273 points.
As the finance minister of India, P. Chidambaram tells the investors to be calm; the Dalal Street was at complete chaos. A stock broker attempted suicide and many complained of cardiac problems. This was not only the picture in Mumbai, but the heat could be felt else where. For many their hard earned money went down like water leaving the investors poorer by Rs. 5.8 lakh crore. Uncertainty prevailed that how the market will behave on Wednesday. But the dollar reacted sharply on Wednesday morning, when the rupee turned weak and was quoted lower by about seven paise against the US currency at 39.55/56 a dollar today morning.
In the recent times the Indian Stock Markets have been on a dramatic rise amidst all concerns. Take for instance, on January 10th the sensex reached a high of 21,206 which was 29 times high than many mature markets.
The chaos radiated from the fears of a slump in the US. The credit crisis has led to banks losing billions of dollars. The decreasing spending by American consumers has made the service providers and manufacturers of Asia and Europe to worry about the slump. This makes evident that US economy’s movement remain the nerve centre of the world economy. Now it is upto the Reserve Bank of India, who should think over of the loosening the noose of credit market so that acquisitions and mergers can boosted, which will supplement cheaper borrowings and that will perhaps bring the market back to a healthy track.
Leave Your Comments