Sunday, June 19, 2011

Today's M^3 - Bombay Stock Ex 100 Index Down 3% for the Day

The Bombay Stock Ex 100 Index is taking it on the chin with over a 3% drop earlier today. It briefly broke through the 2011 low.

According to this article from the Business Standard, the selloff is due in part to a resumption in tax treaty talks between India and Mauritius. I'm going to have to do some more research because I'm missing the logic here. India: Population 1.2 billion. Mauritius: Population 1.2 million. (Roughly)
That has to be one hell of a treaty when Mauritius has .001 the population of India yet the treaty can have still have a major affect on India's equity markets.

In the time it took to put together this post, the index has bounced back and is now down just 1.8%. Taiwanese equities have taken over the "worst performer of the day" slot. It's safe to say that the Asian equity markets in general are seeing a lot of selling. I'm going to go out on a limb and declare that the treaty talks between India and Mauritius have nothing to do with the selloff in Taiwan.

(Click on the images for a larger view.
Click here for the current chart of the Bombay Stock Ex 100 Index.
Click here for the current performance of the global equity indexes.)

No comments:

Post a Comment