panch-tattva talk…all in tandem

Friends,

The last twenty four hours have seen each and every market in the world close or trade in the green. This is a scenario that keeps the ones who have invested during the bad months since Oct 08, in a positive and hopeful mood. Not only this , in India at least the bad days have started to clock lower t/o and good days clock high t/o. This is the kind of atmosphere that let’s some cool and fact based thinking to come to fore rather than fear taking away all rationality.

The news is mixed as would remain so for some time to come.

Cement will be costlier by Rs 3 to Rs 8 per bag from 1st April.

The capital account deficit has gone up to $14.6 bn during third qtr. This is the highest deficit since 1990. This should be taken in stride for it has come about on account of very different global financial conditions.

China is important but we should see its importance in light of the fact that its economy is still one fourth of US and one fourth of EU. If the west has to find its feet , it has to find them on their own strength. There is of course a possibility of China and India taking centre stage , only if they remain alert and cover ground over next five to years at a rate not below 6p in terms of growth. This , together with only 1 to 2pc growth in developed economies will see both giants be more important than most others. If the military might also consumerately grows, the influence will be more than the economic status they would hold. I may remind you however that there remain many a slip between cup and lip.

My advice to Indian investors is very simply this that they should invest slowly and if and when the RBI announces the next rate cut, it will be a time to go whole hog into buying.

HariOm,
krsnaKhandelwal