Readings: Rupee fall, 52-week lows, Corporate bonds
India’s rupee may extend yesterday’s drop to a five-year low as the trade deficit swells and overseas investors dump local shares.
The rupee has dropped 16 percent this year, heading for its worst annual performance since 1991, when India devalued the currency as a balance-of-payments crisis forced it to pawn gold from its reserves.
The Reserve Bank of India will stem rupee losses and may halt the currency’s slide at about 47 per dollar, according to Larsen’s Deosthalee and Essar’s Paramasivam. A steeper drop would draw speculators, possibly causing the rupee to spiral down into a “bottomless pit,”
- Business Standard: 1,000 stocks hit 52-week lows
Over 1,000 actively-traded stocks hit their 52-week lows during intra-day trades on Monday.. . . as many as nine Sensex components — ICICI Bank, TCS, Tata Steel, DLF, Reliance Communications, Satyam Computer Services, Ranbaxy Laboratories, Jaiprakash Associates and Hindalco — closed the day at their 52-week lows.
Real-estate and infrastructure stocks such as HDIL, Parsvnath Developers, Gammon India, Unitech, Indiabulls Real Estate and Jaiprakash Associates have not only closed at 52-week lows, but have also declined by over 80 per cent from their respective 52-week highs.
I guess this will continue today with most Asian markets down ~ 4%.
- Bespoke: Corporate Bonds Worse Than Equities
Hard to imagine something worse than the 8 -9% drop in major US indices!
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