ross18
Rohan Sanghavi
Market boom or bust? US, India in it together
Reliance Power listing disappointed the stock markets on Monday. The company, which had issued the country’s largest IPO, listed at Rs 430 compared to its issue price of Rs 450. Investors sold off the stock in desperation as it ran even lower to almost Rs 390 before coming back to Rs 420. The Sensex fell 700 points. That was again bad news for investors.
Earlier in the week the government released statistics which predicted that the Indian economy would grow by 8.7 per cent in the current financial year. The economy had grown by 9.6 per cent last financial year.
Does the market crash indicate growth is slowing down? Will India go down if the world economy is hit? CNN-IBN’s Senior Editor Sagarika Ghose asked this on Face The Nation to a panel comprising Paranjoy Guha Thakurta, honorary director of School of Convergence, chief economist for Standard and Poor (Asia-Pacific) Dr Subir Gokarn, CNN Correspondent Jim Boulden and market analyst S P Tulsian.
“Of all the Asian economies India is the least likely to be affected by a slowdown in the US. India is the best insulated against a slowdown in the US and a slowdown in our momentum will be because of domestic factors,” said Gokarn. “But, at the moment, we are still looking at a growth rate of more than 8 per cent and that is no mean performance.”
India was largely unaffected by the 1997 East Asian financial crisis. Can the Indian economy remain totally unaffected if such a crisis were to happen now?
Fate tied with America?
No, said Thakurta. “You cannot have the Indian economy decoupled from the American economy. A slowdown—use that if you don’t like using the word recession—in the US is bound to have an impact on the Indian economy but India is possibly going to be affected relatively little compared to many other parts of the world,” he said.
“The Indian economy is slowing down, and the American economy is one of the many reasons for that. That doesn’t mean we are doing badly, many other countries will do far worse than us,” said Thakurta.
Market analyst Tulsian said a GDP growth of 8.5 per cent was quite “positive”. A growth of 9 per cent and even 10 per cent is possible in the next two financial years, he said.
US in recession?
“There has been strong evidence in the last week that the US will probably dip into recession. Some say it is already in recession, but perhaps a shallow recession would be an accurate term,” said Jim Boulden.
Source :- http://www.ibnlive.com/news/market-boom-or-bust-us-india-in-it-together/58713-16.html
Reliance Power listing disappointed the stock markets on Monday. The company, which had issued the country’s largest IPO, listed at Rs 430 compared to its issue price of Rs 450. Investors sold off the stock in desperation as it ran even lower to almost Rs 390 before coming back to Rs 420. The Sensex fell 700 points. That was again bad news for investors.
Earlier in the week the government released statistics which predicted that the Indian economy would grow by 8.7 per cent in the current financial year. The economy had grown by 9.6 per cent last financial year.
Does the market crash indicate growth is slowing down? Will India go down if the world economy is hit? CNN-IBN’s Senior Editor Sagarika Ghose asked this on Face The Nation to a panel comprising Paranjoy Guha Thakurta, honorary director of School of Convergence, chief economist for Standard and Poor (Asia-Pacific) Dr Subir Gokarn, CNN Correspondent Jim Boulden and market analyst S P Tulsian.
“Of all the Asian economies India is the least likely to be affected by a slowdown in the US. India is the best insulated against a slowdown in the US and a slowdown in our momentum will be because of domestic factors,” said Gokarn. “But, at the moment, we are still looking at a growth rate of more than 8 per cent and that is no mean performance.”
India was largely unaffected by the 1997 East Asian financial crisis. Can the Indian economy remain totally unaffected if such a crisis were to happen now?
Fate tied with America?
No, said Thakurta. “You cannot have the Indian economy decoupled from the American economy. A slowdown—use that if you don’t like using the word recession—in the US is bound to have an impact on the Indian economy but India is possibly going to be affected relatively little compared to many other parts of the world,” he said.
“The Indian economy is slowing down, and the American economy is one of the many reasons for that. That doesn’t mean we are doing badly, many other countries will do far worse than us,” said Thakurta.
Market analyst Tulsian said a GDP growth of 8.5 per cent was quite “positive”. A growth of 9 per cent and even 10 per cent is possible in the next two financial years, he said.
US in recession?
“There has been strong evidence in the last week that the US will probably dip into recession. Some say it is already in recession, but perhaps a shallow recession would be an accurate term,” said Jim Boulden.
Source :- http://www.ibnlive.com/news/market-boom-or-bust-us-india-in-it-together/58713-16.html