The 2G case has taken its toll on Essar Energy. On Wednesday Essar Energy said its chairman Ravi Ruia would step down from his position for the time being. The CBI has accused him of suppressing information about the extent of the Essar Group’s ownership of Loop Telecom. Ruia of course, denies the charges against him.
Ravi Ruia steps down from his post at Essar Energy; the rupee rebounds sharply; markets soar, breaking a five-day losing streak
In other news, Congress president Sonia Gandhi has said controlling inflation is a top priority. At a party meeting on Wednesday, she said the Congress realized that common people were hit worst by rising prices. Wholesale inflation in India still hovers at around 9% despite aggressive monetary tightening. On the bright side, food inflation has eased to just 4.35% in the week to 3 December.
Meanwhile, in another a spot of good news on Wednesday, the rupee rebounded, with dollars flowing back in and Indian shares shooting up. It ended trade at 52.50 to the dollar. On Tuesday the currency was at 52.88.
And a new move from the ratings agency Moody’s could help draw in foreign currency and shore up the rupee. Moody’s has merged India’s foreign and domestic currency bond ratings. They will now stand at Baa3.