Trading for Samvat year 2072 began on a positive note, with indices opening with an upside gap. The gap was on account of FDI being announced in 15 sectors, post the markets closing yesterday.
Chopada Poojan at Swami Narayan Mandir in Dadar (E) yesterday. Pic/Suresh KK
While the markets opened with a big gap at 25,934.90 points for the Sensex and 7,838.80 points, the highs were just about there at 25,944.93 points and 7,847.97 points respectively. The closing levels for the day were 25,866.95 points, a gain of 123.69 points or 0.48 per cent.
Actor Isha Koppikar (r) at the Bombay Stock Exchange (BSE) for Mahurat trading with Ashish Chauhan (l) Managing Director (MD) and Chief Executive Officer (CEO) of BSE. Pic/Shadab Khan
The Nifty was up 41.65 points or 0.54 per cent at 7,825 points. Samvat 2072 has made a good beginning, logging gains on Muhurat day. The government’s loss in the Bihar elections may ultimately turn out to be advantageous for the country, if the swift manner in which the government has announced FDI (Foreign Direct Investment) is anything to go by.
Sensing that the opposition may unite to stall things as in the past, the government needs to move on if to complete the reforms agenda. The statement from the Finance Minister that there would be many executive actions is a pointer in this direction.
Also, loss in the state has stirred some sort of unrest among party seniors. Being an eternal optimist and always looking for opportunities in times of adversity, I believe that what has happened is best for India and even more so for the BJP.
A chastened party, a motivated government and reforms now top on the agenda, could be the best one could ask for. Things in Samvat 2072 are likely to be better if course correction is adhered to by the government.
Playing the devil’s advocate and assuming for a moment that announcements made yesterday were an aberration, and going forward, reforms take a back seat, things could get worse. Results from corporates are not showing the turnaround that was widely believed and expected this quarter.
Negative returns on the major indices on Samvat 2071 and also year to date in calendar year 2015, would continue. So there is nothing to lose for the government if it takes this fast and much needed course correction. Else there is little hope other than the Hindu rate of growth.
Nothing is lost for the government or the people so far. This Parliament has another 3.5 years to go. Assuming that the last 15-18 months will be spent on populist moves, the government still has close to 24-27 months to undertake hardcore reforms to complete its agenda.
Believe in the person that the country voted for and allow him another 12 months to deliver. Hopefully, things will look better when Samvat 2073 comes along. Wishing readers and their families a Happy New Year.