Rupee slump hits city markets, recruitment also takes a blow
With pessimism gripping the Bangalore markets after the rupee slumped against the dollar, an underlying fear has overtaken investors, and interestingly graduating students are also feeling the repercussionsWith pessimism gripping the Bangalore markets after the rupee slumped against the dollar, an underlying fear has overtaken investors, and interestingly graduating students are also feeling the repercussions.
After the rupee slumped against the dollar, several sectors have been impacted and the ripple effect can be seen across various industries
With the current slump, recruitment is currently taking a beating and headhunters are not keen to take on new recruits till the scenario improves.
Meanwhile, market experts opine that the current mood among investors is almost suicidal, and the advice is for them to keep a low profile till January next year.
Several sectors have been impacted by the development and the ripple effect can be seen across various industries.
"Infrastructure, banking and finance sectors are badly hit. Apart from a few lead players in the automobile industry, others are in bad shape as well," Kumar V Jahgirdar, a member of National Stock Exchange said.
'Worse than 2008'
Further, experts now reveal that the international markets may be faring badly, but the impact on the Indian market is worse.
"There is a lot of pessimism in the market. No fresh money is coming in and transactions are much lower compared to the last six months. We are comparing the present situation to the 2008 recessionary period, but are in a much worse position now," said Manoranjani Girish, a market analyst.
Reiterating her point, she said that in 2008, companies had huge cash reserves because of the high they experienced before the recession hit.
"This time, companies are struggling for orders. Indian market thought that self-sufficiency (selling within the Indian market) would work for them, as the tide of global slowdown swept across. However, things are not as rosy as the industry predicted," Girish added.
What is adding to the woes of various sectors is that foreign investors, who had long-term plans for India, have now had a change of mind.
"Small-time investors have moved out of the arena and the central government is not taking any policy decision, because of the 2G scam and regularisation has come to a grinding halt," said Jahgirdar.
Hit rock bottom
Headhunters are also facing a cascading effect, as graduating students are expressing concern over the situation. So much so that many companies have withdrawn their need for new recruits.
"For many graduating students, their world came crashing down with this news. Companies are looking at strict cost-cutting options and their current employees are worried. Taking new recruits aboard is out of the question," said Shradha Kala, a headhunter from Koramangala.
Other recruitment agencies have also expressed the same concern, claiming that although their personal targets have been met, worried students continue to seek hourly updates.
"We have not heard from either the company that interviewed and short listed us a month ago, or the recruitment firm. Those who got through campus placements are also looking for answers - there is no solution in sight," said Prathik Mishra, an engineering student.
With the current situation getting out of hand for students, colleges are reportedly advising them to look at alternative career options till the industry picks up again.