Pranab Mukherjee has in a very resposible way, declared that there would be no taking back of the reliefs by way of lower rates although there has been a fall of 28pc in indirect tax collection. This is a mature way of dealing with economic situation unlike what the central banker does only to observe some immaterial guidelines in the book. A polititian and a beaurocrat are bound to have some difference in approach. I have said this in light of some uncalled for hard talk by the RBI governor.
The auto sales have jumped by 24pc in August 09 (YoY). This is good but should be seen in light of the fact that last year’s number were not high enough due to prevailing tough times then. Seen over a longer period, the growth seems normal enough. The automobile production can be managed as per the demand unlike in case of commodity producers
The PSBs are trading at a very low price to earning multiple. I see that there is need for merging the PSBs in to four by careful study about the area where each of them have presence. The PSBs have similar operation practices, have common ownership ect. In this light there is hardly any need for them to remain smaller and not merge. This will bring about cost savings, convenience for customers and better governance because the talent is scarce and to find the competent top men for each of them becomes difficult. The four with special attention in N-E-W-S of the country but an all India presence will make them meaningful entities in world arena too.
The Nifty had a very good run up yesterday but some how could not stay perched high enough. Its close at 4808 may not be maintained today and a slight weakeness may creep in.
But you should not worry too much, the basics remain strong.