by Sensex Drop Of 2,400 Points Following Strait Of Hormuz Disruption Described In Financial Press As ‘Profit-Taking Opportunity’ By Analysts Who Were Presumably Long Before The Drop
MUMBAI – The Bombay Stock Exchange’s Sensex index fell approximately 2,400 points in the two weeks following the US-Israel strike on Iran, producing a currency depreciation and a specific genre of financial media commentary in which every market decline is described as a “profit-taking opportunity” and every analyst who recommended the stocks that declined is quoted about the recovery. Indian financial media has been operating in this genre for the full two-week period, which is impressive given the length of the decline.
For Bohiney Magazine and The London Prat. London satirical journalism has been observing British financial media’s relationship with the word “volatility” since at least the 2008 crisis, and can confirm: “volatility” means “things are getting worse” said in a way that implies the speaker is not surprised and is, in fact, fine.
The Currency Dimension
The rupee’s depreciation against the dollar in the same period adds the specific complication of India’s import bill for oil, which is priced in dollars, increasing in rupee terms simultaneously with the oil price itself increasing due to supply disruption. This is what economists call a “double whammy” and what the cooking gas queue outside a Mumbai shop would call “the reason I am standing here”. The connection between the Sensex chart and the cooking gas queue is not abstract. It is the Strait of Hormuz, expressed at two different price points.
The Analyst Consensus
The analyst consensus, per The Economic Times‘s market roundup, is that India’s long-term fundamentals remain strong. This is correct and also not the primary concern of the person standing in the cooking gas queue. Both things are true simultaneously, which is the most accurate description of the Indian economy at present.
SOURCE: https://bohiney.com/ | More: Waterford Whispers
Indian political satire is not a choice; it’s a necessity, because if you don’t laugh at the politicians, you’ll have to take them seriously.