Narendra Modi takes Sensex to new highs

One of the most awaited day of this year was yesterday, the nation got a new Prime Minister – Narendra Modi who won clear cut yesterday. The exit polls had predicted a similar kind of victory for the NDA.

For the first time in 30 years a party has won clear majority on its own.

In last couple of months the markets rose from 5800 levels to 7000 levels on NIFTY.

Yesterday NIFTY hit an intraday high of 7563 while Sensex touched an intraday high of 25375, but ended low because of profit booking.

How should you invest in stocks now?

The markets are at the highest level and its way to risky to invest fresh. One may consider booking partial profits if the market rises another 3-4% up.

We expect the market to be range bounded and be in the range of 6700 to 7350 on NIFTY.

Markets will get clear direction once the new PM assumes office and works on his policies.

What’s your take?

1 comment… add one
  1. hemen parekh May 18, 2014, 5:50 am

    Next 100 Days

    Dear Narendrabhai ,

    You have talked your way to power – calling yourself , ” Mazdoor # 1 ”

    Now , it is time to ” Walk the Talk ”

    People of India have taught a lesson to the party which called you ,

    ” Merchant of Death ( Maut Ka Saudaagar ) ”

    They believe you to be ” Merchant of Dreams ( Sapno Ka Saudaagar ) ”

    Of course , no one expects any miracle to happen on the ground , in the next 100 days

    But the decisions that your Cabinet takes – and transparently communicates to the people – in the next 100 days , will tell them , whether your Government is any different than UPA-2

    Here are the decisions that people expect :

    A … FIGHTING CORRUPTION

    * Appoint Central Lok Pal
    * Appoint ( where missing ) , Lok Ayuktas in BJP controlled States
    * Appoint Special Fast-Track Courts to try within 1 year , criminally-
    charged MPs / MLAs / Bureaucrats / Politicians / Businessmen

    B… BLACK MONEY TO WHITE MONEY

    * Introduce Amnesty Scheme , for monies invested in Infrastructure SPVs
    * Amend Personal Income Tax to Inverse Taxation Regime , where the
    incremental tax rates keep going DOWN in each higher slab
    * De-monetize Rs 1000 currency notes

    C… JOB GENERATION

    * Amend Corporate Tax Regime , with incrementally reducing tax-rates
    for Companies with higher employee-strength
    * Introduce ” Accelerated Depreciation ” for investment in Capital Assets.
    Capital Goods industry is the Mother of all industries
    * Focus on creating ” Self-Employment ” thru tax-breaks for self-employed
    * Low interest loans for self – employed

    D… DEVELOPMENT OF NORTH-EAST STATES

    * Industrialists / businessmen will not come forward to make huge
    investments in North-East , in absence of excellent infrastructure of
    roads / rails etc

    All private investments made here must be tax-free for 25 years

    E… SIMPLIFY LABOUR LAWS

    * Today’s labour laws make it extremely difficult – if not impossible – for employers to layoff / retrench workmen , if demand shrinks

    * Employers are unlikely to hire thousands of youth , if they cannot easily trim the workforce , to match the shrinking demand

    * So , an important corollary of any Job Generation Scheme is to modify our existing Labour Laws to facilitate layoff / retrenchment , when situation so demands , while protecting the interests of the workmen concerned

    F… EDUCATION / UNIVERSAL LITERACY

    * What is responsible for keeping 28.7 Crores of Indians illiterate ( 37 % of World’s illiterate ) , 66 years after independence ?

    * Ans : Lack of educational infrastructure consisting of Schools / Colleges /
    Equipments / Qualified Teachers .. etc

    * Solution ?

    Push for E-education thru online delivery of subject-matter thru tablets

    G … GOOD GOVERNANCE

    Ask each concerned Minister , to publish within 100 days, on Ministry’s web site , PROJECT IMPLEMENTATION PLANS , for the following :

    * Food Security Bill

    * Connecting 2.5 lakh panchayats thru broadband

    * Aakash Tablets for 220 million students

    * Delivery of Services Act

    * Aadhar Identification Card

    * Electoral Reforms / Right to Recall

    * CAG audit of Private Companies using Government resources

    * 4G Wireless Internet all over India

    * Delhi Mumbai Industrial Corridor

    * Amritsar-Delhi-Kolkata Industrial Corridor

    * Natural Resources Allocation Policy

    * Political Party’s Funds under RTI scrutiny

    * Liberalization in FDI ( Entire economy – not just retail )

    * Government funding of Elections

    * Interlinking of Major Rivers

    * ” India Post Bank ” with 139,040 branches in Rural areas

    * Bank A/C for every adult by 2016

    * Divestment / Closure of loss-making / bleeding PSUs

    * Imparting skills to 500 million youth ( NSDC )

    * Sulabh Sauchalaya ( Remember “Sauchalay before Devalaya ” ? )

    Dear Narendrabhai ,

    Do provide a ROAD-MAP ( with clearly defined mile-stones ) of how you intend to translate your DREAMS into REALITY

    with regards ,

    hemen parekh ( 17 May 2014 / Mumbai )

    Reply

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