Friday, 24 October 2014

What the new Vikram Samvat year 2071 holds for us.

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

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