The eighth phase of the General Elections in India have come to an end, and with less than a week left for the ten phase Election process to end on the 12th of May, the fluctuations in the Indian stock market reflect the insights of the investors, who feel that this wave will change things, for good. There has gone by a decade of policies which have failed to bring about the promised results. It is not about any political party that we are talking about, but in general, whosoever comes in power will try and make a difference, which they should.
Ever since independence, India has been majorly governed by the Indian National Congress, the people have not very often seen other political parties serving the country. Not favouring any party in particular, but this time round, a historic and awakening result is expected and awaited. A majority for the BJP and its allies would result in a NDA Govt., which quite probably would bring in Narendra Modi as the new Prime minister of India, and not without controversy, his achievements in Gujarat have garnered positive reviews from many corners of the world. Better parts of the opinion polls have suggested that people are only seeking progress, and no leader in particular.
Majority of the Indians are reportedly dissatisfied with the way the country has progressed in the last few years, and this displeasure is across all income groups and generations.Indian Investors in particular are quite optimistic about the Indian stock market’s prospects, they foresee good financial policies in the years to come.
The Franklin Templeton 2014 Global Investor Sentiment Survey (GISS) has revealed that, India is among the most optimistic countries in terms of expectations from its local stock market with around 80% of our investors anticipating their local stocks to be up in present financial year. Investors who were a part of this survey have shown great interest in the Domestic equities, and this is not the first time that such a prediction or rather expectation has been laid out by them.
“As investors, we are certainly hopeful these market predictions play out although obviously there is no guarantee. As we see it, the crux of the problems in India is that the current government hasn’t moved fast enough to make the reforms that many believe needs to be made to propel the country as a whole, forward. We’ve seen progress at the state level but not at the national level. In our view, what India needs is a reform, plain and simple: less corruption and more action. This isn’t uniquely our view,” is what they had to say.
The congested political system in tandem with the business houses is what majority of India terms as the biggest issue which is holding back the country in terms of progress and prosperity.
The diplomatic bureaucracy which has towered red-tapism in India, needs to be mellowed down. The more the complications, the more investors will shy away from putting in their money in the local and domestic market. Education is another field which needs to be taken care of. There are numerous universities in India, but are they equipped enough to cater education at the international level? The opportunities are not enough to equip the potential of our human resource.
The complicating policies, which have been laid down by the political parties in the past, is not allowing businessmen to seek foreign investment rather allowing the brainpower of our country to be shifted to other countries and thus allowing international counter-parts to succeed with us laying in the same drought of power and money as ever.
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