Well frankly, I do not have an answer…
– Domestic growth has slowed in recent months to pretty low levels, and a senior banker saying be happy with 6% growth next year
– A fallen and further falling Rupee?
-Inflation stuck at double digits – latest is 10%!
– RBI’s constant raising of interest rates have NO impact on inflation.
Foreign investors have bought just a net $800 million of Indian shares vs. $29 billion last year!
Korean won has slipped about 1% this year
Malaysian ringgit is down around 2.4%.
The rupee has fallen 14%, ONLY Turkish lira, down 17%, and the Kenyan shilling, – 15% are behind us.
In October, India’s trade deficit rose to $19.6 billion!
Exports are falling, oil, gold, and coal imports are hurting bad…
Slow FDI and slow FII – The benchmark Sensex is down 20% this year.
Indian government has raised the limit for foreign institutional investment in sovereign and corporate bonds by $5 billion each. Impact on the currency? Marginal and short term!
The great Mani Shankar Iyer says we should not let the currency float…and should be in the pre 1991 era.
For any good thing to happen, we should get rid of the Congress, or ensure that the Congress gets rid of the ‘left’ inside the Congress.
My vote is for a grinding to lower levels of the sensex – no dramatic fall…but a slow process of 16500-15000 but via 17000 – so SIP will work, do not try timing…
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