India’s high fiscal deficit and heavy debt burden remain the most significant constraints to its sovereign rating.
The biggest problem and the top priority would have to be the governance deficit. Experts, economists and policy watchers agree that the lack of decisiveness in policy and the shilly-shallying on key policy matters by a weakened UPA government are causing enormous economic damage.
The state elections results have further weakened the ruling Congress, there is little sign of big-ticket reforms and worse, there are signs that foreign investors are seriously concerned about the Union Budget 2012’s provisions on GAAR and retrospective taxation.
“Policy uncertainty and the gaping governance deficit are issues that need to be resolved first and foremost – and would, in fact, be imperative for other macro parameters to be corrected”
Only a credible mix of policy initiatives, coupled with strong signals that the government values stability of policy, can undo some of the damage which it has suffered of late on the credibility front.
The solution lies in, first, an aggressive thrust on fiscal consolidation, policy and execution reform; and second, India needs a bit of luck on lower oil prices, weaker inflation and stronger capital flows. It needs a mix of both to regain its lustre – and at least one of the two to maintain its current momentum.”
FDI in Retail Sector can boost Retail Segment.
Petrol and Diesel subsidy burden can be cut off by de-regulating control over them.
100% FDI in Aviation Sector can boost the Airlines across India.
Dr. Subbarao has already given importance to growth sector.
Will the Government take immediate action on Policy Reforms or we will have to see Nifty plunging to 4700 this month?............ Guess not, be alert. A simple press statement from FM can make a big difference.
FOR TOMMORROW:
NIFTY MAJOR RESISTANCE AT UPSIDE IS 5250
MAJOR SUPPORTS ARE AT 5144 AND 5123
BELOW THAT EXPECT FREE FALLLLLLLLLLLLLLLLLLL..................................................................................................................................
BUY GIVEN IN WIPRO 400 CALL @ 20 TARGET 22,24,26
PENDING
BUY GIVEN IN ALOK TEXTILES 20 CALL @ .75 TARGET 1
PENDING
BUY GIVEN IN RANBAXY 500 CALL@ 20 TARGET 22,24,26
ACHIEVED FIRST TARGET
PROFIT RS. 1000/-
BUY GIVEN IN TATACOFFEE FUTURES @ 857 TARGET 877,897,917
MADE A HIGH OF 869 GO LONG TILL 1 WEEK TO ACHIEVE ALL TARGETS.
PROFIT OF RS. 3000/-
BUY GIVEN IN TITAN 240 CALL @ 12.50
ACHIEVED FIRST TARGET AT 13.50
PROFIT RS. 1000/-
Happy Trading....
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