From My Desk
Date	24-Sep-2012
Subject	Market Commentary Sept,2012
Details	We have long maintained the view that unless the government gets its act together, markets will remain range bound. With bold steps from government ( FDI & diesel price hike) , sensex has moved up & expected to remain bullish.. FII have invested heavily in last 15 days giving much needed confidence in investor sentiment. Allthough Inflation will be high in coming days , above steps have ease pressure on fiscal deficit . The confidence in continuation of reforms has been further bolstered with unceremonious exit of TMC from the UPA-II and support by Samajwadi Party announced today. This is also getting reflected in the currency moves; the Rupee today saw its highest level in 4 months, due to easing global liquidity coupled with positive response to the reform measures announced by the government. Reform measures announced recently:- 1) Increasing diesel prices and cap on subsides LPG cylinders 2) FDI in Multibrand retail (51%), Aviation (49%), Broadcasters and Cable/DTH (74%) 3) Cut in Withholding Tax from 20% to 5% 4) Finance Ministry approved the Rajiv Gandhi Equity Savings Scheme, to encourage small investors enter stock market. 5) Excise and customs duty on domestic LPG cylinders reduced to zero Proposals in the pipeline 1) SEB debt restructuring package 2) Increase FDI limit in Insurance from 24% to 49% 3) Coal price pooling mechanism 4) Measures to channelize gold savings to productive use 5) Approval for some large infrastructure projects 6) Fast track dedicated freight corridor
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