The RBI has to consistently hike rates and put an end to 'hot money'. Interest rates have to be hiked, agricultural inputs have to be bank-rolled by soft credit on easy terms for the farmer. Agricultural output is more important and always has been a base for good industrial show. Inflation is again rearing its head up, this has to be controlled with drastic measures. Essential food items have to be pumped in by the Govt. without much dithering, into the general market as sugar prices are on an upward spiral.
Much as we love India, the prognosis for the markets is not good. Inflation is officially around 14%, there are not many jobs being created and generally the growth in the market is being fueled by hot money. Plenty supply of that! There is hope yet, long term, once the correction phase ends, which means that the hot money moves out and real investors enter. Meanwhile there is a chance that some investors will get burnt. Reversal to 18k is a possibility. Demographics favour India.
Sensex fell below 20000 mainly because of political uncertainty arising out of mega scams and importency of the present Govt . Moreover sensex @20000 was never backed by any fundamentals . It was just an artificial hibe . Sensex shd settle down at 18000 or so .
Re: nirmal bang
by Hoodibaba on Nov 16, 2010 05:12 PM
Scam's getting caught. Perpetrators of the scam had invested large portion of their loot in stocks. Now they book profits. Suckers are retail small time investors who are the victim os broker cartels mood swings
