Pranab’s Union Budget has shorted the Market !
Ironically It’s Reliance Group Founder’s Dhirubhai Ambani’s Death Anniversary today… Arguably the Father of Indian Equity… He was the King in Capital Formation through Equity….. we probably need him to resurrect… to resurrect our Markets !… he build his flagship on scaling up a Domestic Consumption Story… we need to stimulate the same today… his vision, experience, inspiration, motivation, ideas and leadership would have helped…. You can corelate our huge Fiscal Deficit with Dependency on Oil Imports and being victimised by the huge surge in Oil last year to US $ 145/barrel…. Reliance continues to lead the way in the Private Hydrocarbons Sector in building World Class Refineries and Exploration of Oil and Gas…. Clearly it was Dhirubhai’s Vision to help make India a World Class Country and less Dependent on Oil Imports… His guidance in aiding the Government in Capital Formation through Equity would have been invaluable… He would have had the crucial retail Investors support too.
And how in the Hell did Planning Commission’s Montek Singh Ahluwalia keep stating, in the past few days, on the media to millions that the Union Budget will be Popular !
Was he deliberately misleading, like many of our market operators do, or is he as inarticulate as Finance Minister, Pranab Mukherjee !?…. ‘Popular’ Indeed !… Market has Popped !… Sensex has closed down 870 points at 14043, having breached 14000 earlier… It’s down over 1000 points from Intra day Highs of over 15000 just before Pranab began his ‘to be popular’ Budget Speech… Nifty closed at 4166, down 259 points
And come to think of it even our Finance Minister had told us to Wait for the Budget !… and so we waited… and now we’re worried and those who bet long are even wailing !
It’s not just a coincidence I’m wearing ‘Red’ today !… my past blogs would support this T-Shirt colour code for today !… you thought I was wearing a Red Shirt, did you !?
I do hope to wear ‘Green’ soon though !
3 thoughts on “Second Budget Reaction at Market closing a few Hours later….Pranab’s Budget has shorted the Market”
Hello Gauravji,
I wish to share your concern. We do not seem to be doing anything for the fundamentals. When monsoons fail, we advise belt-tightening; and when they succeed we go for an overdrive into conspicuous consumption. In either case there is no sustainable momentum. About Pranabda I like to say that there should be a retirement age for politicians in Inda!
Hi GAP
I feel that politicians encourages Speculation in the stock Markets. I do not blame the markets to be ‘excited’ about the budget if Monteck himself is escastic in media.
Last year also P.C. maintained repeatedly that gdp growth will be 7.25% . However it was down by over 50 basis points. These comments by FM actually had terrible impact on planning of various companies. One of my friends who is a Demand Planner and Procurement head in an Mnfg Firm told me that had he trusted Chidambaram and RBI on GDP growth numbers, he would be sitting on stockpile of raw materials and shedding tears. In fact he joked that he would appear naked in parliament if FM’s GDP numbers were right 🙂
To be fair to our Ministers…the pulls and pressures in such a huge Economy like India, with 1200 million people, is a great challenge to manage….compound this with powerful vested Interests and lobbies and the conflict between States and the Centre makes this a Thankless Job…Ministers are always under deep public scrutiny and hounded by a 24 by 7 Media
Market Players and Corporate Chiefs will continue to push and probe for this and that aided by an over eager Media….so some of this will provoke some Ministers and their Men to give some exciting sound bytes …In fact we even had the Economic Survey building up our expectations…when the Budget did not have any Big Ticket Pronouncements,we have seen the markets whining back towards 14k
But I do agree with you Shyam,politicians too should have a retirement age ! and Kamal,let’s flip around what your friend had promised to do ! What would you have our Ministers do if they don’t meet their targets or are tainted with scams !?…I know what your friend would ask them to do !