The two important events have taken place in this month itself, the budget and later the RBI’s policy meet. Both have announced, more or less, the continuation of what has been. This is major departure and is welcome. Why not let matters settle down and obsrve keenly before attempting to change course because what govt does makes many act as response and need to adjust. This consumes time and energy which may better be used for generation of wealth and looking for improvement in what we do and how we do.
The govt and RBI have reflected the confidence that people at large also feel. There is however an announcement by RBI which is ver important. The retail investors are going to be alowed to buy G-Sec in demat form. This may therefore force banks service the depositors in a better manner and pay higher that the govt bond yields. It is therefore certain that banks selling at higher valueations might see correction.
HariOm,
Krishna Khandelwal
Panch Tattva Wisdom 