Season
Greetings
The
new govt. has delivered more than expected impetus to our slowing down economy to
turn it into recovery mode. GDP projections nos. is being upgrade from 4.5%
(six month back) to 5.75% to 6% for the current Fin yr. ending March 31 2014.
Apart
from investments commitment from Japan, China, U.K. & USA other countries
are coming forward to explore abundant opportunity (minus redtapism) provided
by this govt.
Deregulation
of diesel prices is one big decision taken in right direction. As a result it’s
not only being cheaper by 6% to 8% but has also brought down subsidy by Rs.
15000 cr.
Government initiates coal reforms
with ordinance to facilitate e-auction of coal blocks for private cos; also
opens door for commercial mining by private players in future.
Government panel asks the Department
of Telecom to work out a mechanism for allocating airwaves to successful
bidders within 90 days of payment.
The multi-billion exploration
auction of Eastern Ghat has again taken centre stage. Once successfully through
will itself be in position to add another couple of percentage in GDP nos.
From investor perspective, all these
initiatives are going to be generating very healthy returns from the equity
market, if one decides to stay invested at-least, for next 4-5 years. On the
other hand debt fund will continue delivering handsome post tax returns for
investment horizon of more than a year.
Regards
