India's richest man Mukesh Ambani has lost thousands of crores as the rupee crashed from 53.80 on May 1 to a record low of 65.56 on August 22. Mr Ambani is the chairman of Reliance Industries, currently the second largest Indian company by market cap after IT major Tata Consultancy Services.
Mr Ambani has lost 24 per cent or $5.6 billion of his wealth since May 1, according to the Bloomberg Billionaires Index. Translated into Indian rupees, Mr Ambani has lost Rs 33,600 crore of his fortune in nearly four months (at a median estimate of 60 rupees per dollar). Mr Ambani is left with a net worth of $17.5 billion or Rs 1 lakh crore (1 dollar = 60 rupees).
Mr Ambani's younger brother, Anil, has lost 17 per cent or $1.3 billion of his fortune during the same period, according to the index. Anil Ambani, who heads Reliance Communications, has a fortune of $6.3 billion and is the country's eighth-richest man, according to the Bloomberg ranking.
Kumar Mangalam Birla, chairman of Aditya Birla Group, has lost about $950 million, or 11 per cent, of his net worth since May, according to the index.
The Indian rupee has crashed over 20 per cent since May 1, leading a global selloff in emerging market currencies on fears of higher borrowing costs and tighter supplies of cheap cash from the United States.
Some analysts fear that the currency can slide all the way to 70 against the greenback.
The Reserve Bank of India (RBI) has proven unable to stem the rupee's selloff, despite intervention and curbs on outflows from companies and individuals, which have dented India's stock and bond markets. The government continues with incremental steps, banning duty-free import of flat-screen televisions.
In a briefing after meeting the Finance Minister for more than two hours on Thursday, RBI governor defended liquidity-tightening measures taken to protect the currency and said the country had adequate foreign reserves to keep up that fight.
On Thursday, Finance Minister P Chidambaram said there was no need for unwarranted pessimism and the rupee was "undervalued". He, however, did not announce any new measure to shore up the currency.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
