From sometime the indian stock market underperform. The indian stock market is driven by FII liquedity. Now when US and EUROPION markets coming on track FII are selling their stocks in indian and other EMs. Last year when indian market outperform, the valuation of indian stocks are streached. So they become expensive from peers. The fare value of indian stocks according to EPS is below 5400 nifty. So the benchmark may go to 5400.So every one cautious about market. The investers and traders should be more carefull now
The november IIP data is very disappointed. The nov. industrial growth at 2.7%. Other side the food inflation rate at 19%. This is a critical position for a country and headache for RBI. In quarterly monatry policy, if RBI increase interest rate than the industrial growth may fall more. And if RBI not increase in interest rate the inflation may up. From last one year the policy of central govt. to control the inflation is only depand on interest rate increase. Some decision of govt. like increase in petro product prices help breakout in inflation rate. Now the position on both side either inflation or growth is uncomfortable. The govt. should take another step to control inflation like more food distribution by PDS at low rate and cut petro price to down transport expences.
This is a season of scams.Their are so many activity seen in and outside the parliament.Due to demand of JPC parliament session blocked. The peoples of india are become habitual about the news of scams.The govt.try to show that he is honestly act againest avery kind of scam. But in fact a biggest scam of our histry is going on. That is "covering scam". In last few years we heard many scam. The CBI inquary is going on. In many cases chargesheets are also file. In few cases, like Telgi scam ,convicted also. But where is the money? The lacs of crores rupee were going in the pocket of currupt beaurocrates,politicians,industrialists and agents. The money of country, the money of people not recovering yet. And no one demanding this. Actualy this is the "covering scam'. Where the prime minister can say that the scam is happan, but i am not taking money so my govt.is clean and honest. It happans only in india.
This is a pain full stage of food inflation in india. The food inflation touch 19% mark.But the center govt.,who is mainly responsible for this is only making statement . How can a poor country like india servive in this condition. When the govt,s own study says that 70% peoples in the country are earning below 20Rs.per day.There are crores of families not earn to purchase only "atta".The only steps to control the inflation is taking by the govt. is increase in interest rate. The interest rate increase is only increasing the cost of industrial products. The peoples who purchase a home 2-3 year before are not in position to repay the loan. They are already ruin by food and other inflation. Why the center govt.not increasing the quantity of PDS. The total PDS system delibrately destroyed by the govt. to save some expense at the name of "good economic policy". Is a anti people policy is "good economic policy". The total economists, who are crying on the subsidy burden at PDS system , can they suggest a solution for this situation? When the govt. giving a huge amount of subsidy at name of SEZ,and other projects, than why not on foods to save lives of poor peoples. This is same full situation for a society and a country where the peoples are dieing due to BHOOKH.