The Govt hiked petrol prices by Rs.7.50 Rs/Liter.
The markets reacted as usual by selling the news.The price action of the PSU refiners were:
IOC: -1.32%
HPCL: -1.74%
BPCL: -0.03%
And this on a day when the Nifty is up by 1.77% !!
No wonder the Indian Rupee is getting crushed
Over the last two years, India has been inflating at roughly 10% per annum. The dollar has been inflating at roughly 2% per annum. So, it is only natural that the exchange rate will depreciate; the nominal exchange rate which is correcting from the fact that the rupee has been losing value faster than the dollar. By my own calculation compared to two years ago to now, say two years ago Rs 44-45 now I would have expected it to be between Rs 51-54, roughly in that range-Kaushik Basu, Chief Economic Advisor to GoI said in an interview
Some stuff I am reading today morning:
Rupee trapped in vicious spin (WSJ)
Goldman seals India’s biggest office space deal (ET)
The high price India pays to maintain the status quo (NYTimes)
Challenging times see exit of MF honchos (BusinessStandard)
Galleon’s partner’s eyes “popping” after trade (Bloomberg)
How does Michael Dell keep his job (247WallStreet)
The delusion of regulating risk (DailyReckoning)
The Indian Rupee is getting crushed (FTAlphaville)