Mumbai: The rupee posted its biggest single-day decline in 20 years on back of panic selling on Wednesday sparking warnings that the economy was on the brink of a full-blown crisis. The rupee slumped 3.83% percentage points to a lifetime low of 68.83 per dollar. US markets ended higher on Wednesday as investor risk appetite showed a modest improvement, although concerns about western military strikes in Syria kept the markets on edge as oil prices kept climbing, reports Financial Times. The Dow Jones Industrial Average and the S&P 500 gained around 0.3% each and Nasdaq Composite was up 0.4%. Asian shares also stabilized on Thursday morning following positive closing on Wall Street. Japan’s Nikkei Stock Average was flat, China’s Shanghai Composite gained 0.3% and Hong Kong’s Hang was up 0.4%. In India, there are growing worries that another Asian financial crisis will hit the economy in the next 12 to 18 months, reports Economic Times. At Rs.68 to the dollar, the Indian currency has depreciated around 25% since May implying a loss of purchasing power of 2.5-3% of GDP which is hugely recessionary. Infosys Ltd shares will be in focus after Ashok Vemuri, a member of the company’s board, and global head of manufacturing and the Americas, who was also a contender for the top job after S. D. Shibulal, announced his departure, reports Mint. Cyrus Mistry, chairman of Tata Sons Ltd told shareholders at Tata Motor Ltd’s 68th annual general meeting that the company was working towards repositioning the Nano as a smart city car aimed at younger buyers. Tata Steel Europe Ltd will introduce around 30 new products this fiscal year to widen its customer base, even as Europe’s biggest nations showed signs of economic recovery in the June quarter, reports Mint. The Adani Group is group is pinning its hopes on dollar revenues from its port business, pass-through of additional coal import costs to consumers and a dollar bond issue to replace existing loans to offset the impact of rupee depreciation, reports Business Standard. In order to stabilize the rupee, the Reserve Bank of India has decided to open a foreign exchange swap window to meet the daily dollar requirements of the three public sector oil marketing companies, reports Business Standard. Bharti Airtel Ltd shares will be in focus as Manoj Kohli, the managing director of Airtel’s international operations will move back to India in January to a larger role involving decisions on acquisitions and global partnerships, reports Mint. He will be replaced in Africa by Christian de Faria, head of South African telco MTN group. Lastly, four journalists have been murdered in the last two months in Uttar Pradesh in northern India, bringing the total number of reporters killed in the country so far this year to 10, reports Wall Street Journal India.
Posted on: Thu, 29 Aug 2013 03:37:18 +0000
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