Diwali 2014

This post got unreasonably delayed. This Diwali was again lacking in its usual splendour. This time around there is a new government at the Center. The BJP won the general elections in India with a majority such that its comfortable to take decisions and push reforms forward. In the Rajya Sabha (upper house) however they are in a minority. The BJP government has decided to use the ordinance way to push bills. They have just today pushed an ordinance through to merge the PIO and OIC cards for NRI's.

Haryana had elections in which the BJP won and in addition Maharashtra, Jharkhand and J&K. In J&K the BJP did not get a full majority.

The SENSEX and the NIFTY have continued to perform well though the retail investor does not look very confident. SENSEX went up to 27,000 and NIFTY went up to 8400 on optimism of a full majority government after 30 years.

If Cost has to be looked at in terms of basic items like Tomatoes, Onions and Potatoes. Everything remains expensive at around Rs. 40 per kg on an average.

Crude meanwhile has dropped to USD 47.50 from 110 USD when the Modi government took over reigns of our country.

USD/INR briefly strengthened to 57 around May 2014 and has again weakened to Rs. 63.50 approximately.

Overall things are slow but positive. I am optimistic for the future of our country.

Diwali 2013

HAPPY DIWALI

Wishing all people across the world health, wealth and happiness on this Diwali. May you have a safe Diwali.

This year Diwali has been quite muted in terms of the fire works that we would see, thanks to the escalating costs as well as the anti pollution drive by the government as well as many thinkers pushing for reducing fireworks in the country.

On this Diwali the Indian stock market has made new highs (Sensex is at is historical High) however the optimism is missing. Certain stocks have performed really well, particularly the pharma sector has been the darling.

We have general elections in India next year in April-May 2014. Political posturing and spat is picking up. Post Diwali I would expect rallies and meetings to increase and the political fever to go up. The general mood does seem to be on the side of Mr. Narendra Modi.