• OUTLOOK ARENA
  • VIEWS ON NEWS
  • NOVEMBER 25, 2000

Government: You get what you elect

The sentiment on the bourses continued to remain weak. The benchmark indices have shown lateral movement for the past two weeks. The BSE Sensex and NSE Nifty were down 1% for the current week.

Both FIIs and mutual funds remained net sellers in the market, which has contributed to the weakness on the bourses. FIIs and mutual funds sold to the tune of Rs 829 m and Rs 842 m respectively. Mutual funds seem to be continuing with their strategy of staying liquid.

Last week, with the start of the winter session, news of the Government disinvestment programme and second-generation reforms surfaced. However, there has not been any new development, which is obscuring the vision of the future path of the country and economy. Consequently, with poor vision the markets have remained directionless.

The tumbling NASDAQ has added to this state of limbo. With tech companies continuing to miss their earning estimates the markets have punished these stocks, which has resulted in the US bourses stumbling. Nevertheless, on Friday, the NASDAQ bounced back 149 points up or 5%. This jump could bring some succour to the Indian markets on Monday. But the larger question is whether it is a dead cat bounce?

The ongoing winter session of parliament will remain a key driver. The markets await for some positive news to flow in from Delhi. Strong political and economic policies are the need of the hour. The question on everyone's mind is; will the Government deliver on its promises, this time? One will only have to wait and watch and till that time the markets only behave accordingly.

Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (Research Analyst) bearing Registration No. INH000000537 (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA, Canada or the European Union countries, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.

SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

Equitymaster Agora Research Private Limited (Research Analyst)
103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407