Sunday, April 08, 2007


India Stock Market Update 08 April 2007

The Government keeps on dropping little hints about still being on the reform track. In the midst of all the furore over the SEZ policy, the government released a modification to the policy such that some of the main objections were over-turned. The policy now mandates that Government agencies will not be involved anymore in the procurement of land from villagers, instead the SEZ building private company will have to get land. This is a good compromise, corporates buying land gets them out of the whole dispute about the villages not getting enough compensation. But the restriction on buying land more than a certain size seems unjustified. By setting up large industrial tracts, which will eventually form the basis for a city type of urban development with associated services, the SEZ policy could have resulted in more distributed urban growth areas, that may not happen for the time being.
On the stock market, right now, high interest rates are there for some time, although the long term outlook remains that interest rates will be low. The stock market seems to have accepted these policies geared towards reducing inflation, and more articles are getting posted about the need to take steps to control inflation. I remain in the market, although with caution.
Stocks that I am currently tracking:
1. Bharti Airtel
2. Mahindra Gesco
3. Peninsula Land
4. Bharti Shipyard

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