Yesterday’s Sharp drop in Sensex highlights one stark fact: The investors from across the world come to India only when all other major economies are giving negative returns. Indian economy has still not been liberalised, and arbitrariness and unreliability of tax regime and regulations not removed, to the extent that investors put their money in Indian businesses because of positive reasons, not because they have nowhere else to go.
Labour reforms, reforms in tax regime, dismantling of regulations, full dismantling of quota/permit/license Raj; is what is required to unleash the power of Indian entrepreneurs. In short, complete separation of economy and State is immediately required.
Instead what we have is a sinister campaign to make business, rich, industry dirty words.
In The Economic Times of today, 5 reasons are given for the fall of Sensex. But to us they are peripheral.
” Tracking the momentum, the 50-share Nifty also came under pressure and slipped to an intraday low of 8777.15, weighed down by losses in banks, capital goods, IT, power and realty stocks.
The S&P BSE Sensex finally closed at 28844.78, down 604.17 points or 2.05 per cent. It touched a high of 29321.06 and a low of 28799.76 in trade today.
The Nifty ended at 8756.75 down 181 points or 2.03 per cent. It touched a high of 8891.30 and a low of 8740.45 in trade today.
So what happened? ” (from the article)
Read the whole article here.
