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Indian stock market are closed

Mumbai, Nov 28 () : Indian stock market was closed today on occasion of Guru Nanak Jayanthi. There was no trading of stocks, bonds or currency.

Yesterday, the Sensex closed on a positive note with a year-high and is expected to shoot further when it opens tomorrow. The Govt clearing the logjam and agreeing for vote will usher in many bills that will clear the economic hurdles.

Asian stock market slumped after reports of US budget talks being caught in a dispute. This led to fears that World’s biggest economy could go down in recession.

Harry Reid Senators’ expressing that little progress was made towards fiscal deficit and could result in higher taxes sent shock-waves. $16 trillion debts not including the $5 trillion due to medical insurance and social security have sent alarm bells in a bleak situation. US has been putting up debts of $1 trillion a year to reach this figure.

Way out is increase in tax, cuts in social welfare and defence spending which will lead to recession. To surmount this, US treasury must issue weekly auctions in the range of $50-70 billion.

Myanmar, Japan and Africa have emerged as investors’ options than Indian private equity firms. The strengthening of yen and among the BRICS, it is China and India that are not favoured destinations for PE investments. Consumer, healthcare, business services industry and manufacturing are PE investment favourites.

High investment, savings rates and growth outlook have made Moody’s to rate Indian economy stable. This comes when Standard & Poor’s and Fitch warned India rating as junk.

Bad infrastructure, low per capita income, high government deficit and debt ratios, a complex regulatory environment, and a tendency towards inflation is what is pulling down India, the agency said.

Moody says 51 per cent FDI in multi-brand retail will help India but it will have to push other reforms that require Parliament’s approval.