And for a Friday as India’s stock Markets Zoom and Sensex crosses 54K, some thoughts..… some musings.….
Stock Markets all over the World are barometers of the country’s free market economic forecast. Somehow markets always see ahead – the Bulls and the Bears. Sensex has crossed 54000. Some pessimists say it’s just a few rich Gamblers in this closed loop. Not any longer. India’s stock trading electronic systems are most advanced. Shares are held in a Demat format by centralised Independent agencies like NSDL and CSDL. Settlements on a T + 3 days which means the entire transaction is completed electronically and on sale of shares, your money is credited to your bank within three working days. This is one of the best in any part of the World. A great indicator of the success of Indian share markets, is the geometric increase in new retail investors opening Demat trading accounts. 16 lakhs in FY 19-20 doubled to 34 lakhs last year and this year has the highest of 14 lakh investors just in 3 months. With Chinese tech stocks taking a big punch globally, Indian markets will continue to be attractive. Ofcourse caution is advised. Do not venture without adequate information and induction into the concept of Market capitalisation.
Whilst stock markets recognise and reward well run companies, the big bane of Indian Economy are the huge loss making Public sector Companies guzzling away tax payers money year after year. What better example than Air India, once the Maharaja in the Sky, as long as Tatas owned it, is now loosing more than 10,000 crores every year and the Govt unable to find a buyer. This is also the story of a number of PSUs in Central and worst still are the ones run by the State Governments. Here’s where my friend James Joseph IA&AS (Retd) has started a very incisive YouTube Blog – Bharnachakram. Each episode worth listening, exposes the ills of our state finances and plausible remedies. We need more of our brilliant honest Central service officers to share facts and offer solutions.
Let’s all support India’s Economic growth as we are coming out of the Pandemic. We have the Potential and the Opportunity. Let’s go for it the Transparent way, the “Ease of doing business” way, the SEEGOS way.