panch-tattva talk…India…an economy over $one trillion

Friends,

India’s economic size grew to cross USD one trillion and the size of market capitalisation followed course, it has even toured past USD 1.5trillion mark lately. This is no small event though for a nation that still lives in part in the times not very much different than nineteenthcentury. The trillion dollar club has membership of about a dozen nations . It may seem a dramatic event but it is a fact too that in real terms the economy’s size has been worth more than a trillion dollars for far too long. Indian economy is still operating in some ways on barter system and escapes the accounting in monetary terms. For example a ‘Purohit’ serving Indian households is still paid in form of goods and facilities.

Talking about markets, it has been continuously failing to cross previous peak and hence would now be termed by technical analysts as entering bearish phase. In case of specific scrips too the same scenario is unfolding. To further strengthen the belief the economic news flow is indicative of slow down in certain measure. The pull up now requires an effort greater than ever before. ’What to do next?’…’Sit pretty’…is my answer. There would be some spurts but not on sustainable basis, the real impetus may come only when the IT sector starts moving up and hence wait for such times before entering back.

Hari Om,

krsnaKhandelwal