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IPFS News Link • India

India Stock Market Loses 5.5 Trillion Rupees Amid Energy Crisis

• By Charles-Henry Monchau, CFA, CMT, CAIA

Top 4 losers:

State Bank of India (SBI) down -4.14%, banking sector pricing in a full economic slowdown as India's energy crisis deepens.

Titan Company down -6.72%, PM Modi directly asked 1.4 billion Indians to stop buying gold for a year. Titan makes jewellery.

ABB India down -8.77%, capital goods and manufacturing collapsing as energy costs make industrial operations unviable.

IndiGo down 4.8%, jet fuel costs have exploded and PM Modi just discouraged all foreign travel.

India's forex reserves have fallen by $38 billion since the war started as the RBI has been selling dollars to defend the rupee. At the current rate of drawdown, India has roughly 8 months of import cover remaining. 

The rupee hit an all time low of 95.23 against the dollar today. Every $10 per barrel increase in crude oil prices raises India's annual import bill by approximately $13–$14 billion.


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