Dear members,
Note: Please read it in business way not in politics.
Congress won trust vote now several pending reforms expected to complete within 6-month, we mean before election. These are huge positive to share holders only. Its good for market in all time, except for very long term. We cannot reveal positives to you presently will tell you details later, currently this topic will tell you only negatives, it does not means there is no positive, you can expect huge positive which will help market.
Privatization in banks
Government is considering to reduce stake in most of banks, they are trying to become a minority share holder. So in future decision will depend on new promoter. Government is selling at market price not looking actual assets so heavy reserve benefit will go to new promoter, but also the heavy dividend government getting will go out.
So new decisions will be from new promoter, lets not forget that bad decisions created heavy selling in USA, take example Bear Stearn 150$ to 1& within 2-days due to loss created by bad decision or greedy.
Note: In our site we had written that Banks are in safe investment method, if privatization happens we will remove it.
Provident fund:
Relaince , and some other banks are mainly going to control this fund investing in market. In very long term it is possible to face heavy crash, which means heavy wipe out in this fund, so naturally ordinary people will loose. Reliance got this chance, buy helping government to get vote support.
Sez reforms: More liberal rules for companies expected.
FDI: FDI investment in present year is expected to very high.
N-deal:
It's a big big deal for companies, around 1 laksh crore $ deal, may go 2 or 3 laksh crore dollar. That's why money power helped to won trust vote, companies behind it will get major deals. As the unit cost is very high around 10 rupees (it can go high as the raw material cost is expected to go high as it is available in mainly in some leading countries Only ) it will also huge benefit in future as they will earn as power cost.
Happy Trading,
Neeraj M S
Mathruppillil(H),
Thrissur (Dist),
Kerala.
E-mail: neerajms@...
Web Site: www.lakshmistockgroup.com
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