Wednesday, July 23, 2008

INDO-PAK JOINT VENTURE MAY BE ON ANVIL!

Indian burses welcomed the verdict regarding the stability of the Government. The sensex and nifty has risen remarkably to -day i.e 23rd July 08. Well it may be initial euphoria as well. One cannot be certain that days of the bear are over. Better wait and watch is advisable for serious investor, day trader are indulging usual betting and making their money. Most of them off course making up their loses what they might have incurred earlier. However there is some good news in international scenario. The crude price is cooling down, though that also cannot be taken as certainty. With the crude price coming down, if at all, reining inflation can be easier. The progress of monsoon is hopeful and likely to meet the expectation. Though the growth rate is under pressure in the current quarter and likely to affect the projected growth rate at the year end. Still if the situation improve day by day, than it would not as bad as the market Gurus have been predicting. The mutual funds are sitting on heap of cash and waiting for the opportunity to dive in the market. Though nothing encouraging is reported yet form foreign institutional investor houses; many are expecting them to join soon. Besides, in a significant change of stand, Pakistan Government expressed its readiness to allow Indian investor to invest in Pakistan. They are specially interested of Indian based company willing to set –up manufacturing units in Pakistan for CNG based buses or vehicles. After independence this is the first time ever they have expressed such intention. One can hope this being responded, the plethora of opportunities the cousin country can offer may open up. Obviously this will improve the bilateral relation and curb the terrorism in the subcontinent. It is reported that Pakistan Government has invited at least three Indian Companies – Tata, Reliance and Essar to a meeting of potential investors in the power sector to discuss the development of the Thar coal power project. This shows that they are interested of Indian investment in other sector too. A good start of Zardari government no doubt!

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