I just finished listening to Victor Adaire on Money Talks. He rationalized the plunge to an unexpected interest rate hike in India. Victor said that the Indians raised their interest rate at 8pm friday evening to allow markets time to digest the news. The time here was 10:30 Friday morning in Toronto. I also read our good friend John Nadler. His take is that there is a huge decline in demand , because of the rapidly improving economy in Europe and the US.

The timing of the Indian announcement is plausible, however I am in the skeptical camp.