oppn parties Turbulence Ahead For The Economy

Story Of The Day

Stock Indices Scale New Closing Heights
OPINIONS : Strongly Expressed

April 20, 2024

People Are Talking About

Rohit Warns Sarfaraz, Police Use It To Warn Two-Wheeler Riders

News Snippets

  • Supreme Court says all cases of mob violence and lynchings should not be given a communal angle
  • Supreme Court tells petitioners who want elections to be held with ballot papers as they fear EVM tampering to back their claims of tampering with data
  • PM Modi says he is indebted to the Constitution which is an article of paith for his party
  • Mamata Banerjee says people do not have freedom to eat what they want under NDA then how can they have freedom to speak
  • Bengal, wary of clashes on Ramnavami, has tightened security all over the state, especially in pockets that witnessed such clashes in previous years
  • Ramdev and Balkrishna of Patanjali offered apology to the Supreme Court for misleading advertisement with folded hands. The apex court had earlier said their apology was not worth the paper it was written on
  • A whistleblower has claimed that China bribed senior UN officials to keep the lab leak angle out of reasons for spread of Covid
  • Two men from Bihar were arrested from Gujarat for firing at actor Salman Khan's home on Sunday morning. Mumbai Police said they wanted to kill the actor
  • Supreme Court order West Bengal governor to appoint VCs to six universities from the names provided by the state government in one week
  • Wow! Momo raises Rs 70cr from Z3Partners in the latest round of funding
  • IMF raises India's growth forecast from 6.5% earlier to 6.8%
  • Re plunges to a new low of 83.54 per dollar as global tensions mount
  • Stocks remain weak and negative on Tuesday: Sensex plunges 456 points to 72943 and Nifty 124 points to 22147
  • Candidates' Chess: D Gukesh draws with Ian Nepomniachtchi and with six points each, both reamin joint leaders. Pragg also drew with Vidit Gujrathi
  • IPL: Table-toppers RR beat KKR by 2 wickets
Encounter at Kanker in Bastar in Chhatisgarh: 29 Maoists, including 3 'senior commanders' gunned down by security forces
oppn parties
Turbulence Ahead For The Economy

By Linus Garg
First publised on 2022-05-13 02:08:30

About the Author

Sunil Garodia Linus tackles things head-on. He takes sides in his analysis and it fits excellently with our editorial policy. No 'maybe's' and 'allegedly' for him, only things in black and white.

 After four days of volatile trading which resulted in losses for investors, the stock markets crashed on Thursday. Sensex tumbled by 1158 points to 52930 and Nifty went down by 359 points to 15808. Investors were jittery ahead of the announcement of the CPI data and their worst fears were confirmed when the NSO reported that inflation, as measured by the consumer price index (CPI) stood at 7.8% in April, the highest in eight years.

Food and fuels prices are fuelling the inflation which, according to the Finance Ministry, is likely to stay elevated in FY22-23. The ministry said that timely action by the government and the RBI will reduce the duration of inflation. It also said that India was better placed than most nations to tide over the global economic stress and record steady growth.

During the trading hours in Indian stock markets, the US inflation figure for April was put out. It stood at 8.3% which was lower than March but still high enough to spook the market which now expects another stiff rate hike by the US Fed. Such a hike will result in another flight of funds from the Indian stock markets as FIIs will withdraw funds.
The day was also bad for the Indian rupee, which hit an all-time low of Rs 77.63 per dollar and later settled at Rs 77.5025. A falling rupee will add to inflation as fuel costs and prices of imported inputs for industry will increase leading to passing on of the costs to the consumer.

Indian economy is now entering a very turbulent phase. The cost-push inflation, along with rate hikes by the RBI and subdued consumer demand makes the picture hazy for companies. The Centre and the states should seriously think of reducing taxes on fuel as an effective short term measure to keep prices in control.  

Other Stories You Make Like

Editorials

Citizens' Right To Know Versus Politicians' Right To Privacy And The Test Of Proportionality

Citizens' Right To Know Versus Politicians' Right To Privacy And The Test Of Proportionality

 India's Young Guns Come To The Fore

India's Young Guns Come To The Fore

In Depth

As Per Hindu Marriage Act, Saptapadi Essential, Not Kanyadaan Says Allahabad HC

As Per Hindu Marriage Act, Saptapadi Essential, Not Kanyadaan Says Allahabad HC

Editor's Pick

The BJP Crushes The Opposition By Any & All Means

The BJP Crushes The Opposition By Any & All Means
© 2014 India Commentary. All rights reserved.