Weekly Thoughts

by P.N.Vijay

Indian market comes under stress as earnings seem to lack momentum

For a change most global led by straggler China ended positive for the week only India posted a negative in excess of 1%. While there was no compelling reason for this, it would seem that the flow of earnings coming from corporates did not really set the house on fire. For instance the big boy Reliance Industries did report a whopping 33% increase in profits but that did not prevent punters from smashing the share down on Monday. Clearly the fact that Reliance was scaling down its gas production target for KG D6 weighed heavily on sentiment. The law has been amended recently and so listed companies are given 45 days to come out with quarterly results and so big ones alike Bharti, Tisco and Tata Motors are taking advantage of this. As I had mentioned earlier the first quarter results need to be very good for markets to seek higher levels and right now what we are seeing does not give one that confidence. Both a high base and high input costs are playing on bottom lines.

Meanwhile a very interesting statistic coming out of the U.S is that the credit spread between corporate and government bonds is falling sharply and is at its lowest level since 2004. This is the best indicator of the perception investors in U.S. have of the performance of companies.

Why so much corruption under your nose Dr. Man Mohan Singh?

We Indians have got used to corruption as a part of life and politicians or government servants being caught red handed does not scandalise us any more. But even then the spate of scandals that are surfacing are just unbelievable.

For the Commonwealth Games a treadmill is hired for 45 days for Rs 7.95 lacs! A normal one costs Rs 3 lacs and very good one Rs 6 lacs or so to buy outright. A cross trainer is hired for 45 days for Rs 8.8 lacs. A big contract is given to a non descript firm that runs a garage in London. An umbrella is hired for Rs 6308!

If Mr. Kalmadi is having a ball, many others in Delhi are also partying at the expense of you and me. Roads are laid at enormous cost ( CVC reports sound so horrifying) and they cave in within a week.

The point is what is Dr. Man Mohan Singh doing about all this? Is he PM only to sign nuclear deals? Mr. Kalmadi is a Congress MP and a former Minister. Delhi is Congress run state. Is it not his duty to order an enquiry into the whole affair?

And why is our media not targeting him? He is not the President. If people in America can go after Obama and U.K after Cameron the way they do, we should stop treating our PMs as if they are Gods?

Underbelly

Mr. Gill India’s sports Minister who ahs been taking a dim view of the din on CWG cracked a classic one recently: “Are we spending so much money to see Suresh Kalmadi and me run?” Travel agencies and hotels are reporting zero interest so far.

One of my friends told me “Vijay the way things are going in India, whole of your Jottings has to be turned into Underbelly!” Says it all I guess.

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