THE ECONOMIST WINS OVER THE POLITICIAN

I have lots and lots of respect for the hon. prime minisyer dr. manmohan singh.,,i was keenly recording his budget speeches in 1992-1995 period.

he, with the legend intellectual visionary late shri p.v. narsimharao,,, literally changed indias fortune for the better.

within last 1-2 months,, the economist dr. manmohansingh, has taken two, very smart steps,,which will be very good for the economy for the long run, but will have certain negative impact for the stock markets in particular for banking and auto stocks for short--medium term period.

FIRST, it was a collection of almost 1lac cr from telecom auctions.

SECOND, proposed de control of oil prices,, the oil marketing companies are said to be in loss of huge 72000 cr ,, this step, will allow omcs to increase oil prices and they will recover 72 k cr.

as. most of the omcs have huge govt. stakes,, major chunk of this 72k cr will be in the govt. kitty.
NOW, THIS HUGE FUND OF APPROX 1.6 LAC CR ,, will surely help economist pm to reduce budget deficit,, which will have great boost up for india s image as a frowing economy.

BUT, this will surely create inflationary pressure and the the dirty interest rate rise cycle will speed up.
so, lesser money in the system...higher interest rate and pressure on auto sales.

with the world market charts looking SIGNIFICANTLY WEAK ,, due to these steps , india will join in line with the deep correction , with the world markets.

technically, channel and 5171---4960--4675...are the downside targets, if nifty cant cross 5360--5445--5467.