“I want to make the 21st century, India’s century. It will take 10 years, not very long,” are the words of the soon to be sworn-in Prime Minister of the Republic of India, Narendra Modi.
16th of May, 2014 might be regarded as one of the most important days in the history of Indian financial markets, reasons whatsoever. The landslide victory for the Bhartiya Janta Party (BJP) in the General Assembly Elections has led to the rupee to continue with rich rein of form this month. As soon as the election result trends ferried in, the stock markets rocketed to breach the 25,000 thousand mark- a splurge of 1,100 points. The overseas investments were quite evident.
The average exchange rate has been Rs58.53/$ in the last twelve months. Going by what the traders have to say, there are bleak chances of the gap between the dollar and rupee to be filled massively, as the RBI has been a prominent buyer of dollars in recent times. Though, International experts are of the saying that selling off the Indian Rupee on a high seems to be best trend to go by as of now, as it is not for long that it will rock around the Rs58/$-Rs59/$ range. The indices around the world have shown a downslide in the past few sessions and it would be smart enough to smell similar circumstances to spread.
It was not long ago that almost every other person was of the opinion that India has gone from a potentially strong market powerhouse to a sluggish economy which smells of corruption and poor management. The ex-finance minister P. Chidambaram claims to have done efforts to strengthen the money in the past decade. But the ideological change brought in by this wave of dissatisfied people who have been glided along the promises of reformatting and revising the economy is not be considered a yet another thought process or chance. These Elections, ‘economy’ has been the root cause of the abundant voting for the Bhartiya Janta Party. Narendra Modi is being thought of as the plank which will set this sinking ship ashore, with the investors and markets aboard, easier said than done.
It takes time for the strategies and plans to fall into place and show results. Declaration of the General Assembly Election results has always shown an improvement in the rupee with the foreign inflows picking up. But how far they continue holds the key. With Modi, who is more than often touted as a pro-business political mind, it might be the change India is set for.
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