The
downslide in Indian share market continues. The Bombay Stock
Exchange sensex crashed by 951 points on Monday, thereby closing
below 15,000 figure. On Tuesday also, in the first session,
the sensex climbed up 42 points and later came down by 65
points. Among other reasons being attributed to this downfall
is said to be the sub-prime crisis in America as also the
rising crude oil prices in the international market. On Monday
the price of crude oil touched $112 mark and in the present
scenario it is unlikely that the price would come down. Even
though in relation to the dollar the rupee has become weak
by 29 paise. Still the dollar is weak as compared to other
world currencies. Even though the US is shying away from admitting
regarding slowdown in the economy but the figures prove otherwise.
This has resulted in collapse of banks there one by one. Needless
to say the impact is being felt worldwide including the developing
world. With the fall in the value of the dollar, the inflation
rate would go up and in the prices would be affected in the
same ratio. Finance Minister P Chidambaram, expressing concern
over this situation admitted that it was not an easy task
to achieve control over inflation and the resultant price
increase of commodities. During discussions on the budget,
in the Rajya Sabha, Chidambaram said prices of wheat, aluminium,
steel and other items had gone up sharply. As a result the
investors are also taking less interest and finding investment
in gold and mineral oil safe. In the meanwhile, India would
have to make special efforts to come out of the current crisis.
There is also need for review of rules for investment to bring
stability in the market. As per the finance minister, the
government is making all-out efforts to protect the poor people
as also the industries.
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