Correlating the ups and down in the Indian rupee with the stock market, Vijay Bhambwani, CEO, bsplindia.com, suggests that if the rupee continues with its downward fall, the Indian stock market may fall breach October lows and fall further. “If the rupee falls below the 53.0-53.50 mark vis-a-vis the USD, expect a mini meltdown atleast in the equity markets. In that case, the 2250 level (on Nifty) will be breached easily to form a new low. The possibility of that low being below the 2000 levels on the Nifty spot is fairly high,” he says. Bhambwani supports his outlook by comparing the value of rupee at the time of October lows. “The October 2008 lows were made with the INR at 51.20 - 51.40 band. The rupee has breached the 52 level since then. Clearly the nation’s ‘share price’ (currency) indicates weakness. The curency market is a far more accurate barometer of the nation’s health compared to the equity indices. Whether you like it or not, we are under siege. Had it not been March (NAV ...
1. Activists wearing masks of G8 leaders from left; French President Nicolas Sarkozy, British Prime Minister Gordon Brown, Japanese Prime Minister Taro Aso, Canadian Prime Minister Stephen Harper, US President Barack Obama, Russian President Dmitry Medvedev, Italian Premier Silvio Berlusconi and German Chancellor Angela Merkel, and dressed as chefs "cook the planet" in a fake cauldron as they stage a demonstration against the G8 (Group of Eight) summit scheduled from July 8 to July 10 in L'Aquila, in front of the ancient Temple of Vesta, in Rome, Wednesday, July 8, 2009.
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3. President Barack Obama, left, and his first lady Michelle Obama