Indian markets have been bleeding money ever since November’s Diwali festivals — ironically the time when Indian’s welcome the goddess of wealth into their homes.Markets are down $200 billion or 11 per cent year-to-date and $240 billion since November 8, according to The Economic Times.
Foreign investors alone have pulled $849 million out of Indian markets so far this month.
Indian billionaire Mukesh Ambani’s Reliance Industries took the biggest hit Friday, dropping 2.2%. HDFC Bank Ltd. which trades on the NYSE was the one of the few companies to stay in the green, gaining 0.30% on the Sensex.
To curb inflation the central bank announced another 0.25% rate hike on January 25, the seventh since March 2010.
Goldman Sachs’ Jim O’Neill predicts the carnage will continue through the first quarter, with a slight uptick by year-end.