Apr 13, 2009|
India Inc. staring at a 'loss'
SP's vision for India
If the Samajwadi Party (SP) supported government comes to power at the Centre this time around, many companies in India might have to write off another kind of loss from their books - loss on account of unused computers. After all, the party's supremo Mr. Mulayam Singh Yadav believes that - "The use of computers in offices is creating unemployment problems. Our party feels that if work can be done by a person using hands there is no need to deploy machines." Incidentally, the party is also against the use of agricultural machines and high corporate salaries.
Some of the other key 'promises' made by the SP in its poll manifesto include banning English medium education and removing the language as a medium from all offices and education institutions, replacing tractors by bullock carts in agriculture, banning share trading and stock market operations and stopping the mall culture.
So what do you get reading all this? Shiver? Sleeplessness? Or simply a hazier vision of the India of tomorrow?
Stocks open strong across Asia
Getting on to some serious stuff, stocks across Asia are off to a rollicking start this week, as gains are seen in the benchmark indices of China (up 2.4%), Hong Kong (2.9%) and Singapore (2.5%). Gains in these markets are seemingly on the back of reports that while Japan has more than doubled its economic stimulus package, bank lending in China has again picked up a strong pace.
As for the US markets, the final trading day of the last week (Thursday, April 9), had seen the Dow Jones Industrial index rise by a solid 3.1%. Getting into this week however, economists and market experts expect some caution given that the quarterly result season in the US is expected to start on an extremely weak note. "The arrival of the first big basket of what is likely to be a rotten batch of quarterly results" is how CNN's financial website describes the onset of the quarterly results out there.
As far as India is concerned, the markets here have also rallied big time as the BSE-Sensex has gained almost 34% since its lows in the first week of March. However, here as well, companies are expected to turn out weak quarterly performance as a whole, given the pressures most have seen on account of factors like slowdown demand, supply bottlenecks and currency volatility. Also, in light of the Satyam issue, most companies are expected to delay their result announcements considering that they will be making themselves pretty sure of the reported (and audited) numbers!
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