• 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.

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