SENSEX CROSSING 15000

SENSEX CROSSING 15000











There ought to be a steep fall after the steep rise especially when sensex is highly sensitive to political turmoil! Since fall in sensex causes financial setback for many salaried and other middle-class investors resulting even in suicides, Reserve Bank of India (RBI) should devise mechanism whereby stock-market may be prevented from becoming a gambling-point. Past several episodes recall that rise and fall in stock-market is managed by stock-brokers and not by investments of small investors.











A new fiscal policy needs to be devised so that public-sector-undertakings (PSUs) may issue safe bonds with higher returns to give government’s investment in PSUs back rather than disinvesting them. It will provide small investors safest investing opportunities rather than rushing towards highly volatile stock-markets! It is also necessary because of absence of any unemployment-insurance in the country, and ever-falling interest-rates in government-securities and public-sector banks. If rising sensex is the index of industrial growth, there was no logic to disinvest ‘navratna’ public-sector undertakings like Maruti Udyog Limited. Instead this company under government-control could be encouraged by making it compulsory for all government, semi-government or quasi-government bodies to make all purchases from government-owned company with the widest range of cars.