Stock market blooding in red not green
BSE on friday was down 769 points and NSE was also in red. This is a strong indication of Indian Economy going down.
The reason for this fall is the money taken out by FII's and people investing in gold rather than stock market.
The fall is expected to continue along with fall in rupee.
The Indian economy seems to be in a big chakrvyuh, and no abhimanyu seems to crack it out.
The reason for downfall is lost of trust in Goverment's economic policies. The current account deficit, and free gifts by goverment in form of Narega, food security bill etc. are the other big reasons.
If you see the various schemes of goverment for vote bank, none of the scheme is in interest of country as a whole.
The various schemes and their bad results can be summarised.
|NAREGA||The money is lost in corruption. Whatever reach to real people is never back in treasury. The end results lot of cash flow from goverment treasury.|
|Proposed Food security bill||Even this bill will have same effect as Narega.|
|Free Laptops or Aakash tablets||3rd class items that goverment gives. You really think Aakash will be helpful for poor students, who cant afford the food for two times. How they will afford the internet cost. And tablets and laptops without internet are just dead boxes.|
I would like to add one more thing regarding exit of FII's from Indian market.
You would have heard of very famous Vodafone case. What goverment did was reformulating the tax laws and made it applicable form years back. The step of goverment not only heart the sentiment of retail foreign investors but also big investors including Business houses.
Another reaset cited is that America is coming out recession and since america has a strong civic and economic enviroment, people will invest their instead of India.