Well, its been a long since I wrote my last post on Indian Economy. At that time the stock market was booming and I explained how the subprime crisis was proving to be a boom for India. At that time India was a darling of the investors worldwide and dollars were pouring in.
Not any more. The tide has reversed. Today the Sensex closed below 13,000. Its lowest this year. A state of gloom has engulfed the market.
What actually has happened ?
Well unlike the falls of the past, the current decline of stock market is related to many factors. The oil prices are touching new heights everyday. The costlier the oil, the costlier will be all those things that depends on it. Right from the Cooking Gas-the very basic item to the cost of airfare – everything has shot up. The transport costs of goods, the production costs in factory and everything in between – all has shot up. And this is the situation of almost every country in the world. [click to continue…]
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