It’s the time to disco…

A good monsoon in India and the hope of economic recovery on the international front
are some of the main factors that should help quicken the pulse of the market. A good
monsoon!! Yaa!! Like to be and this time it’s proved both the rain and the rain of FIIs
into Indian stock market. Which one should we talk first? Stock market- the pulse of
every investor or Food Market- the pulse of every Indian. As told by Amartya Sen, “my
talk will not make any sense, if I ignore common interest.” Ok!! Let us follow the leaders
and talk about common interest. GDP, one of the indicators of development is $1.4
trillion and growing at 8.8%. Again the rabi and kharif production is waiting to add 2.8%
to it. With the agriculture production, service sector, the largest sector in India, is
increasing at a rate of 9.7% and industry at 10.3%.

Inflation, (Oh my god. It will kill me!! My mom says,) is at 8.62% and RBI (big daddy)
also trying to minimize it. Measures like Repo and Reserve Repo has been hiked to curb
the inflation and to reduce the volatility from the call money rates. Finance ministry also
trying to make up the gap of standard and actual inflation rate. Definitely rabi and khariff
will help these two worried bodies to achieve their target.

Again RBI and finance ministry is trying to provide license to some of the lazy laggards
(those who follows the leaders) into the market, I mean new banks. The main focus of
this move is to facilitate rural banking and to make involve of the rural people to access
with the banks. This may lead to more liquidity into the market and proper distribution on
income and wealth into the market. Ya! I appreciate, but think about the inflation
pressure. According to Mr. D.V. Subarao, it will increase liquidity into the market and if
there is any question about inflation, RBI has close vigil into this problem.

In the other hand, INR also getting stronger, this might give some sort of incentives to the
import trading and can affect the balance of trade. Which may create a problem in the
near future but growth in other sector may compensate the worry and the export and
import ministry is trying to solve the case partially. Other cases like asset inflation,
reduction of NPAs, increase of the strength of physical and future market in both
commodity and equity is also giving some signal of fast growth.

No doubt increase in the flow of FIIs increased the aspiration of the investors and other
sectors also. FIIs have pumped about 1.37 cr. into the stock market till date.

Overall we can say that the future of India, is on a perfect shape and by organizing CWG,
India has proved its efficiency in the world. As a common Indian, what could I say for
this sign, as a sign of growth or as a sign of leading the world economy? The one thing
that I can expect….some bullishness.

Bibhuti Bhusan Sarangi

SCMS-COCHIN

bsarangi88@gmail.com