For quite some time, we have been noticing a Lull in the markets. Some people blame it on Low Demand, Some to governmental issues, some to low Domestic Consumption & some to the Weak World Economy etc.
We can say whatever we can with our limited Knowledge, hear Say and assumptions. To be true, that’s how people predict and some of them are true.
However, let us get our facts right on what have been the core throny issues:-
- Government on a Defensive: Since past 1 year, Government has been on a defensive rather than in a reactive mode, which it should be. Because of Anna Campaign, Opposition getting stronger and because of its own allies not supporting and been in an attacking mode. This has put government on a defensive mode rather than in a WORKING MODE and MOOD.
- No Policy Decisions: Since the government is too busy in solving its own problems, it has kept all the Policy Decisions on Hold, lest someone stand up a la Mamta and stops the Bill from passing like it happened in “100% FDI in Retail” Issue.
- MNC’s in a confused state of mind: MNC’s are waiting in the wings to come to India, but are in confused state of mind as they never know when the rules would change or even if their license etc will be approved.
Now what we see unfolding is a new ray of hope.
- February could be a game Changer as election results for Important States like Punjab, Uttar Pradesh and Uttrakhand are due and the mood on the street is that Congress could form the Government in Punjab and Uttrakhand and could be a major gainer in Uttar Pradesh. Even if we discount that Congress may not form the Government, BUT still increases it’s tally a bit then too, we may see a strong Government emerging again as ATLEAST the allies will be silent.
- If the allies are taken care of, then we foresee a major rush of Policy Decisions coming, which have been waiting on the chest drawer for long.
- Policy decisions being Taken, and Stability of Government would send good Signals and we may see an influx of investments in Industry, Technology, Power, Logistics, Retail, and Financial Services.
- This scenario, added with a Good Budget would change the scenario and we could see a change which we all have been waiting for past year.
- No one has a doubt that Mr Manmohan Singh and his team HAS DONE and CAN DO wonders, provided he is not bound by Political Compulsions. He is weak in handling the Political manipulations, due to which many of us see him in bad light. Now, if due to the election results, that change, then we could see him presenting a Budget which would help him and the Industry gain a foothold on what they have lost in past one year.
With this I conclude and would add that this is the right time to invest as
“Yeh Valuation Na Milegi Dobara”