Monday mayhem on Dalal street as sensex tanks more than a 1000 points
Mumbai: India’s benchmark Sensex nosedived shedding more than a 1000 points as the Indian rupee broke the 66.00 mark against the US dollar. Although, over Rs 4 lakh crore worth of investors’ wealth may have been wiped out in today’s crash so far, experts see the freefall as a good buying opportunity as India still remains a rare bright spot in a weakening global economic scenario.
As the rupee slumped to 66.67 per dollar on Monday, its lowest since September 2013, Reserve Bank of India governor Raghuram Rajan said the central bank will not have any “hesitation” in using foreign exchange reserves to reduce currency volatility.
In an interview with CNBC TV18, Atul Suri, trader with Rare Enterprises, said the extent of fall in Dow and global indices will have a knock-down effect on India though India will relatively outperform, it will stand out among emerging markets and will be the first market to recover.
Suri further added, India will benefit from big global commodity meltdown. Sharp corrections in the market are always an opportunity to buy, current dip is an opportunity to buy into IT & pharmaceuticals.
Interest rate cuts should only be delivered after sustained low inflation, and not as “goodies” doled out after public pleading, Reserve Bank of India Governor Raghuram Rajan said on Monday.
“Rate cuts should not be seen as goodies that the RBI gives out stingily after much public pleading,” Rajan said in a speech to a banking event.
“Instead, what is important is sustained low inflation,” he added. “And rate cuts are a natural consequence that the RBI has no hesitancy in delivering.”