MONDAY’S MAYHEM: THE FIVE KEY TAKEAWAYS

1 RUPEE AND YUAN

The rupee has fallen in line with other emerging market currencies, after China devalued the yuan a fortnight ago to aid exports. This triggered fears of similar moves by others to counter slowdown in exports.

2 FOREIGN OUTFLOW

Sensex plunged 1,625 pts on a bloodbath in Chinese bourses, driven by panic selling. Emerging fears — it could lead to flight of foreign capital from markets such as China and India to new locations, to minimise losses.

3 DIVESTMENT WOES

A volatile and falling market could hit the Union government’s ambitious disinvestment drive — its plans to rake in about ` 69,000 cr from selling stakes in public sector companies in fiscal year 2015-16.

4 COSTLY PLATTER

Imported items such as computers, mobile phones, kiwi fruits, Washington apples, imported chocolates, liquor will cost more. Overseas education and holidays abroad will be costlier, so you will have to shell out more dollars.

5 CRUDE SHOCK

A weak rupee will offset gains from low crude prices, limiting oil firms’ ability to cut retail prices of petrol and diesel. The RBI may be forced to keep interest rates high to bring in more dollars. Exporters’ earnings will, however, go up.