The rupee recently slumped to 66.74 against the US dollar… It has lost over 4 per cent in the last two weeks! Experts say it is expected to weaken further more.
The BSE sensex slumped 1,741 points, or nearly 6 per cent on Monday itself. This is the biggest ever fall in a day. Moreover, Nifty tumbled to 7,769 points. These are troubled times for the Indian market and confidence is at its lowest.
However, I was a bit shocked when RBI governor Raghuram Rajan proclaimed that India is better off than other emerging market economies. He added that the macro economic problems are under control. Union finance minister, Arun Jaitley, told the media that the parameters of India are on sound footing. The reality, though, seems far from comfortable.
Foreign investors have started selling their shares aggressively… cash shares worth Rs 1,000 crore in just one day! The very next day, shares worth Rs 2,340 crore were sold, the biggest selling since April 2015. This bearish market is making investors re-think on their decision to continue with their faith in the Indian economy. The crash in the market wiped out Rs 7 lakh crore of investor wealth.
In addition to this serious financial upheaval, India needs to pay Iran a whooping amount of $ 6.5 billion and the struggle for one rank one pension is still hitting us hard.
I could sniff over confidence in the statements of Mr. Arun Jaitley and Dr. Raghuram Rajan.
How are we going to settle this and steer Indian economy towards resurrection?