RECESSION SHOWS WITHDRAWAL SYNDROME

Lot more happened. Banks collapsed. Crores of money of investors steamed. Currencies witnessed huge set backs. Job losses hit the record height. Techies felt the heat of being poor. Countries started thinking of protecting their citizens alone. Economically a country had been vanished. Recession has many more in its credit. After the recession in the early 30s this is the worst one. Some blame it on the developed world while others blame US for the crisis. Who is responsible is a question down the ladder. The question was how we can overcome the recession. Almost all the governments around the world announced stimulus packages for the economies. In reality lots of crores of money had been deployed to bring the economies back on track. America was the master in it. The recession baby president of the US Mr Barrack Obama lead the state through difficult times. Now one thing is sure that we are not hearing any news regarding bank closure from America. Is it symbolizes that the recession fear is out of the door? We can’t believe it until we get more proof in this regard.

Indian stock Market
The worst situation in Indian stock markets raised in 2008, October. The sub prime crisis in the US was the main culprit behind that. Markets plunged and stocks witnessed huge sell off. As a result indices came down FIIs started to sell their holdings. They sold indian rupee and bought back dollar. Consequently Indian currency became cheaper. This same situation continued throughout the year. When headed towards the end of 2008 some activity in stocks had happened. Some kind of buying interest emerged out of despair and slowly it stretched its roots around. Indian stock market welcomed the new year with a positive note. But then came the satyam saga, the largest ever stock market scam in the history of Indian economy. The inflated figures by the satyam promoter came as a shock for the entire India incorporated. When the dust settled down over the satyam scam the recession fears across the globe started easing. And as a result from march 2009 onwards again some buying interest witnessed in the market.
55 percent from the lows in Oct-Nov 2008 have been regained from the stock market. This is mainly due to the buying interest showed by the retail investors. The inflation fears gave way to deflation figures in India this was a positive as well as negative sign for the country as a whole. Some drastic change had been taken place after the announcement general election schedule. Markets witnessed volatility and some sort of profit booking had been taken place. But on 15th May, the before counting of votes Indian stock market surged. There was a clear indication that market will go down after the results if any uncertainty arises but unexpected happened....

Post result scenario
It was never predicted by any analysts. Neither it was screened by the exit poll cameras. But it happened. The thing which happens in a century in any stock market happened in Indian stock market. Indian stock indices surged 20 percent in one day. On may 18th the Bombay sensitive index or sensex surged 2111 points in a single day. This was the greatest in the history of Bombay stock exchange. Trading has taken place only below 2 minutes and halted for the whole day due to aggressive buying. This was the clear indication that UPA government’s policy will be in favor of markets. Market believes that the disinvestment policy will get a clear green signal. UPA is going to take the reins of the country without the support of the left parties. That also gave some sort of relief to market men.
Predictions are touching the skies now. Some predicts that Sensex will break the last record of 21,000 thousand and then it will headed toward 35,000 mark. Some predicts even higher figures. The two days after golden monday were not very bright. Huge volatility witnessed on tuesday and on wednesday indices closed in red. Huge profit booking is taking place in the market. But analysts calculate this will not last long and market will surge with in no time.

Issues and possibilities
UPA came into power as a result of the verdict in favour of a stable government. They should realize that this is not a blind verdict. UPA is getting long 5 years to lead the country once again. Left parties have been marginalized by the people across the country. But it is not because their policies were wrong. It is because the people needed a stable government.
Insurance and aviation bills are up in the sleeves of the UPA government. They can take it out at any time. Disinvestment and privatization are the other two main areas of Interest. It is a fact that during the regime of congress government some quick changes in the political scenario of the country taken place. Dr Man Mohan Singh was the main architect of these reforms. During the last tenure of the UPA government the country’s growth rate witnessed an immediate jump- from the 5plus figure of the NDA time to 9percent during UPA regime.
Atomic energy agreement with the US was another mile stone of their rule. But the left parties left the union and protested against it. The proposed hike in FDI in the insurance sector was another area where the left had disagreement. Another was with the pension fund dissolving. These things didn’t happen only because of the protest of the left parties. Now UPA have the numbers which can defeat a no confidence motion. If they move blindly in order to satisfy the corporate that will prove wrong in the long term. But they have to look after the country’s growth rate also.
Indian rupee regained it’s strength in three days after the election results. This is a clear sign which indicates that FIIs are way back in their road to Indian capital market. History says sensex reached 14,000 mark due to the buying interest of the indian retail investors. After that the gain of 7000 points were made by the FIIs. If this happens again then market will surge. But government will have to look after the problems of the common man also. As recession shows withdrawal syndrome there are many green signals ahead for the Indian economy.

THE CONCEPT OF NANO

There is a silver lining for every dark cloud. or we can say there is always light at the end of the tunnel. The branding of NANO, the people’s car has got huge support from the media and ultimately from the common public. aam admi the term nowadays using more vibrantly. NANO as it claims satisfies the requirement of a cheap car for the public. Somany died and left behind the dream of owing a car in their lifetime. Finally tata’s came to rescue the common man from this very misery of dying before owing a car. Tata’s first unveiled first the concept of affordable car for all. Then the land issue in singur came up and left some dark clouds on the project. But Tata’s emerged successfully from all the drobacks whether it be the strike by the farmers or it be the terror attacks. Finally the concept of nano came in to reality. The branding of the car was a well crafted one and booking counters crowded.
Nano was the relief at times of recession actually it is the child of recession. Recession means less earnings or nil earnings. Less earnings will only lead to less spending. Less spending gives way to slow business, slowing business will lead to the slow down of the economy. When economy slows down people in the country will suffer alot and that will multiply the people’s burden of less earning.
During these difficult times concepts like nano will become successful. Atleast they feed enough to common man’s dreams. ‘Small is beautiful’ was a major concept some decades earlier. Family planning was the issue then. Now the relevance of small is that it means it is affordable. Large numbers of cars are available in the market. Actually they are ranging from AtoZ. But are this vehicle affordable to everyone is the major question to ask. It is not is the answer. These are not affordable. Rs 1 Lakh car is affordable to everyone, which is the concept of the Tata Company. This is also true. So everyone can own an NANO now.

The concept of NANO has got some more relevance. NANO in a sense means affordable. Affordable is the concept related to everything. We can call anything which suits ones purse affordable. Affordable is the concept of the common man. Nano era has paved way to the idea of affordable. Affordable housing is one of it’s kind. 20 crores of the population in India doesn’t have a roof over their heads. The concept of affordable housing is of very much importance in India. Tata housing has come forward with the concept of affordable housing. They are offering a flat in Mumbai for Rs 4lakh an a 2BHK flat for Rs 6.70lakhgs. Sounds good isn’t it.
The concept of affordable housing will become a major one in the recent future. As per the study of Tata housing the 48% of the people in the low income segment are living in rented houses. Affordable housing will give lot more relief to this people. There aresome more reasons also. One is the low purchase rate of the luxury flats. Due to economic slowdown the demand for real estate sector had slated a downward trend. Major builders were forced to sell their projects at a low rate. This also gave way to the concept of affordable housing.
The second reason is the skyrocketed land prices. Major cities are not affordable to common man so they forced to live in the tier2, tier3 cities. They can’t spend much more for their shelter so they start search for low cost apartments. This also gives scope to the concept of affordable housing. Nano family(father, mother, son), Nano home and Nano car this will become a significant proportion in the recent future.
The concept of Nano has got so much influential sides. Affordable housing is the one. More and more developers will come with affordable housing because change is unavoidable. And we can’t neglect the concept of Nano which means affordable.

POLITICS OF INDIAN ECONOMY

Indian economy is considered as one of the major economies in the world. It has got a strong position in the developing economies. As it is known to everyone India is the largest democracy in the world. The growth of a nation is directly linked with the prevailing administration of that particular country. This is evident if we take the case of any country. Our neighboring country Pakistan is the best example. Pakistan lacks strong leadership as a result the country is far behind in the run for development.
Democracy is considered as the best system of administration in the world. It is more fruitful when deals with massive number of people. India has got a billion plus population. To address all their needs at the right proportion is a Himalayan task and sometimes it is impossible too. India is a democratic nation (highly democratic one must say!). As a result of this politicians emerged as the superstars in the system. It is widely considered that politicians in India are the true leaders of the nation. It is through their hands the funds are flowing. Funds which are meant to address the basic needs of the billion plus population. There is a famous saying which tells how can a country be rich. It is only through the richness of the people. When the people in a country become rich the nation will automatically rich. When the living standards of the people in a nation improve automatically the nation also improves. The point is that the politics of a nation determines the economical condition of a nation. These things are interrelated. If you live in a capitalist economy this theory is very well applicable.

Indian Political Situation
General elections are going on in India. On May 16th the results will be published. The political picture of India will become crystal clear after that. As a result of the aggressive campaigns about voting active youth participation has been taken place. More and more people are willing to exercise their franchise which is a good sign for democracy. People are more concerned about politics and they are eagerly waiting for change. The main agenda for all the political parties were development. All others came second. Development had become a mantra in recent past. Are you with or against development is the question often asked. Coalition agenda and government formation come only secondary.
After all the fumes it is a fact that India is a developing nation. 20 crores of the people of this country don’t have a roof over their heads. Unemployment is a matter of concern. It is the realty of a nation after 60 plus years of independence. Politics was feudal establishment in India before 70s. Congress was the superman in the system. India population was away from that untouchable system. After 70s particularly late 70s things changed. Congress party itself had undergone some changes. But the autocratic mentality didn’t change much. Janata party and left movement came in to lime light. But they can’t fully destroy the congress supremacy. Jawaharlal Nehru, Indira Gandhi, Rajiv Gandhi the Gandhi supermacy went on for decades. 90s were bad year for Indian politics. Then India political horizon widened and BJP stormed into the front. Regionalization of politics had taken place coalition had become the keyword of Indian politics.
In the developmental scenario things didn’t change much. Indian poor became more poor and farmers were forced to commit suicide. After 1992 religion had become an unavoidable menace in Indian politics. Now the agenda of politicians has been shifted and now it is development.
The election campaign caption of the NDA government during 2003 general election was India shining. They used all the government machinery to boost the idea of India shining which was a successful ad campaign but the NDA didn’t get much support from the common man and the very campaign created an adverse effect on the then ruling NDA government. This very movement benefited UPA government and they came in to power after the general elections of 2003.

Effect on the market
During NDA regime the growth rate of the country was just above five percent. But when the UPA government came into power the situation became different. The growth rate of the country recorded an upward trend. It reached 9 percent market during UPA regime. But at the tails end of their innings there were some problems. Nuke deal with the US was a controversial issue. The fate of the UPA government was in big trouble but they somehow managed the crisis and emerged as winners.
After the general elections there is a big question mark. UPA, NDA or third front that is the question which requires an answer. There may be another answers too. The recession fears are slowly moving under the carpet and markets are welcoming FIIs with full stretched hands. Before the first phase of the general elections markets were some where in the 9000marks and now it is wandering in the 12000mark. This is a good sign as the economy is concerned. A stable government will do the trick of improving the market. This will in a way benefit the overall well being of the country.
Let’s hope for that because unstable government will only lead to unstable economy. Every political party nowadays is crying for development and it will be their duty to guide the country in the road towards development. The time has come that political parties should work to make India a developed nation.