19 September, 2020

When Will The Bazaar Gloom Lift?

The worst may be over. And if India's back on track with reforms, industrial revival will come by the end of the year.

When Will The Bazaar Gloom Lift?
outlookindia.com
-0001-11-30T00:00:00+05:53

ON Wednesday, August 12, the rupee sank to a record low of 43.35 against the dollar. The 30-share BSE Sensitive Index dropped to a year’s low of 2924.24. Matters evidently went a little out of hand because the Reserve Bank of India felt it necessary to break a self-imposed silence of three months and intervene to pull the rupee back. With the Japanese yen weakening and the Chinese yuan teetering at the edge of devaluation, India’s financial markets seemed quite set on a rolldown last week. Add to this the depressed economic sentiment inside the country and one quite understands the earnest efforts of the VHP to put the legend "In God we trust" on every currency note.

Despite the much-awaited turnaround proving a mirage time and again, finance minister Yashwant Sinha is a fiercely optimistic man. Said he in a recent interview: "We don’t have to wait long. I think by September or October the present mood of gloom in a section of our trade and industry will be replaced by hope...Investor confidence will return. Both...

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