Money on the markets
A maturing market amid the mayhem
When the finance minister presents the budget, the stock market moves one way or the other.
And like every year this will dominate the news.
Over there and everywhere.
Is that fair? Or convincing?
Some of the analysis will follow a pattern.
If the stock market goes up, the budget may be described as successful because it didn’t “rock the boat”.
If it moves sideways, it may be said the market had already absorbed the good news — the growth figures for instance.
If it moves down — the fiscal deficit may be the reason.
If the finance minister withdraws the stimulus it may not be good (for some) because it may mean more taxes and hence less profit.
A railway budget separate from the general budget started in 1924 because the railways then formed more than a third of the budget.
A dedicated budget for railways was called for.
However the pattern of government’s finances has changed and the railways despite the impressive statistics - 63,327-kilometre network, 18 million passengers, two million tons of freight – is less important.
The ‘reform agenda’ understood as ‘market-oriented reform’ or giving more space to market mechanism in food and fuel economy seems to have been held up.
The government can not be seen to be doing away with subsidies just as prices are up. Its hand is stayed for now.
Oil India Ltd’s ads in newspapers and business glossies may help in building a much-needed tempo before its public offering of shares, but if the disappointing listing price of Adani Power and NHPC is any cue to go by, then the days ahead for costly IPOs may not be worry-free.
The energy explorer, which deferred an IPO last year amid the global financial crisis, has lined up a $500-$600 million public offering which will open on September 7 and close on September 10. The price band has been set at 950 to 1,050 rupees a share.
India’s Silicon Valley is saying goodbye to Nandan Nilekani, the engineer-entrepreneur who co-founded Infosys Technologies and helped put India on the global IT map.
A statement from the country’s No. 2 software exporter on Thursday said Nilekani has been invited by the prime minister to head the government agency Unique Identification Authority of India in the rank of a cabinet minister.
The Sensex jumped nearly 50 points on Friday to end at 10,048.49, driven mostly by increasing optimism worldwide.
Gains however were capped by profit-booking in a market that has recovered considerable ground after Satyam unveiled the country’s biggest corporate fraud in early January.