- Raghuram Govind Rajan is appointed as the next governor of RBI.
- Despite measures by govt. and RBI, the rupee depreciates and markets see new lows.
- Companies report poor Q1 numbers which add to woes.
- Rajya Sabha passes the new companies bill with reforms.
Despite liquidity tightening measures by the RBI and various steps by the Govt. the rupee slide does not seem to stop. The rupee touched an all time low of 61.80/$ and recovered marginally. Reacting to this and also due to unimpressive Q1 figures by various companies, the sensex saw one of the biggest single day fall by over 400pts. Though the markets recovered marginally since, it goes on to prove the fragile ground that we are standing on. Every small worrisome news leads to a panic in the market and we see a fall. The strengthening dollar and pull-out of investments by FIIs too are not helping much.
The parliament is in session and all eyes are on the govt. to announce some measures to revive the economy. The Rajya Sabha has passed the new companies bill with an onus on improving transparency and accountability in companies. It has clauses for mandatory Corporate Social Responsibility and replaces the companies act 1956. The law will come into force after the President's assent.
A slew of FDI bills and other such measures are slated to come up in this session, but how far the govt. will be able to utilise the time and push through these bills amidst other political issues like the Telangana quagmire and other controversies is yet to be seen.
So, we wait and watch for better times to come...
