Indian Elections 2009

Mainstream media is reporting this afternoon that the Bombay Stock Market has crashed over 500 points and the sensex has gone below the 10,000 mark.

• Market closes below 10K; Realty, power plunge , Economic Times, 17 Oct, 2008
• Sensex at 2-yr low, ends below 10,000, Indian Express, Oct 17, 2008
• Sensex plummets below 10K, lowest since July 2006, NDTV Profit, Oct 17 2008

The Bombay Stock market has been very volatile for some time now. It has been badly affected by the global economic slowdown and volatility in international markets.

The UPA government has been keeping a brave front and insisting that India will not be badly affected by this economic crisis. However there is no denying that with BSE losing half it’s market value since January 2008, many Indians have lost significant amount of money. These losses have not been limited to the rich, but also include a significant chunk of the middle class

This market loss coupled with high inflation is going to push Economy as the top election issue in the coming Lok Sabha elections.

October 17th, 2008 | Tags: BSE, Election Issue : Economy, Global banking crisis, Indian Economy | Category: Economy, Election Issue, Globalization | Comments (2)

The global financial crisis has gotten worse and is affecting every major country in the world. Stock markets around the world have lost heavily in this crisis.

• Wild Day Caps Worst Week Ever for Stocks, The Wall Street Journal, Oct 11, 2008
• Credit Crisis — The Essentials, The New York Times, Oct 11 2008
• The markets:Off a cliff, Economist.com, Oct 10, 2008
• Financial crisis: Stock markets across world fall amid emergency bank rescues, Telegraph, Oct 8 2008
• Special Coverage : Crisis in Credit, Reuters

As expected, the Indian stock market has also not remained untouched by this global phenomenon. Bombay Stock Exchange’s Sensex has lost half it’s value since January of this year. This is bound to have a negative affect on India’s growth prospect for this year.

• Fixed income Mutual Funds witnessing major turmoil, The Economic Times, Oct 11, 2008
• Global slide continues, Sensex takes an 800-point pounding, The Economic Times, Oct 11, 2008

The UPA Government has tried to keep a optimistic tone about this crisis’ effect on the Indian economy. Politicians, from other parties, have not yet raised this issue as a major election issue either.

• India can weather financial storm: Finance Minister, Indian Express, Oct 11, 2008
• RBI governor reassures depositors, The Times of India, Oct 11, 2008

This crisis is still unfolding and the next few weeks will determine the effect it will have on Indian economy. The current mood in the nation is still optimistic and so this crisis has not become a major election issue yet.

October 11th, 2008 | Tags: Global banking crisis, Indian Economy | Category: Economy, Election Issue, Globalization | Leave a comment