MUMBAI – The Indian stock market is at an all-time low, with the Indian rupee struggling to maintain its strength. Still, all is not lost as investors are hopeful that the economic condition of the country will improve. Here is an insightful take by Arjun Parthasarathy of InvestorsAreIdiots.Com on how the economy will definitely recover –
Most investors around the world are petrified at the thought of the current global scenario – the continuing Eurozone crisis, slowdown in China’s economy and of course the slowdown in the Indian markets. High inflation rates and the sliding value of the rupee are worrisome factors for all Indians. The Union Budget also did not help allay the fears of the common man. It is even being predicted that if the present economic situations persist, in the coming decade, about 3/4th of the global population will be poor.
This period is undoubtedly the worst economic situation India has ever faced since the 1990’s. What is alarming investors more than anything else is that the Indian rupee and the Sensex have fallen by 15 percent, as compared to the figures seen in 2007. Also, there has been an increase of 350bps in the ten year benchmark of bond yields since 2008. Even the GDP of the nation has plummeted below 7 percent. Escalating inflation rate is another worrisome factor. Though India seems to have had it easy till now, it is facing major financial troubles.
