Indonesia raises rates by 0.25% to 7.5%. They have now raised rates by 1.75% since June. Inflation there is at 8%, and their current account deficit is 4.4% of GDP. (India’s facing 9.5%+ CPI inflation and a current account deficit of around 4.5% of GDP) India would actually do well to convert part of their trade with Indonesia to rupees – since both countries are facing currency depreciation.
Brokers continue to have a tough time with low volumes as the Sensex peaks.
Larry Summers has said the good times for India and China won’t last, because everything returns to a mean. This is the kind of argument that could have been said in the last 8 years and it would still sound right.
NSEL seems to now be generating arrests as the EOW in Mumbai arrests Arun Sharma, owner of Lotus Refineries that owes Rs. 252 cr. to the exchange. He apparently spent money investing in a movie “Satya 2”, on a Rs. 38 cr. office in Mumbai with a 10 cr. interior decoration bill, and on real estate.
Meanwhile MCX profits fall by a 65% to Rs. 27 cr. on lower volumes and general provisioning for the settlement fund along MCX guidelines.
Thinksoft Global Soars 50% in a week, after promoters sell their stake at Rs. 260 a share, when the stock was at 150+, triggering an open offer for 20% of the company.