The Hindu Business Line : Obama or Tata: Who can save the economy?

Mack (an American expat working in India) tries to put on a brave face despite gastrointestinal troubles as Bidyut (an economics professor) prepares a home remedy. Divya (a journalist) and Jogin (a student), meanwhile, browse through newspapers.

Divya: Mack, here is a news report that might cheer

you. A doctor is Delhi says he has had more patients

with hypertension and gastrointestinal problems after

the financial turmoil began. You are not alone!

Mack: (Groaning) Reassuring, thanks.

Divya: Here is another interesting news. The chief

of the PM’s economic advisory council says India’s

GDP would grow by 7% this fiscal.

Bidyut: Ha! The finance minister is still hoping

that growth will be around 8%?

Jogin: (Holding up a paper) Wow! 1.2 million people

have lost jobs in the US this year. No doubt people

are falling ill (winks at Mack).

Divya: US domestic issues, Iraq, the economic crisis

and now unemployment; Did Barack Obama bite more

than what he can chew?

Bidyut: It is definitely a testing time for him.

He will go down in history for more than one reason,

that is for sure.

Mack: He looks like a determined and tough man.

But his steps will antagonise several supporters.

Divya: I feel sorry for the man. I hope history will

be fair on the actions he will be forced to take. I mean,

I believe the worst is yet to come.

Jogin: What I am concerned is how the job cuts

will affect India. BPOs would be hit.

Divya: Stopping outsourcing will help US on the

job front temporarily. But how many companies will

be willing to bear the cost of getting work done in

the US, especially in the lean period with bleak outlook.

Jogin: But Obama has made his anti-outsourcing

views vocal.

Bidyut: So have others. But no one has done anything.

At most, Obama can give tax benefits and such sops

to companies not outsourcing jobs.

Mack: But that logic need not come to India’s

rescue. The forecast is downcast. Analysts have

been saying Sensex will fall despite last week’s gains.

Divya: I am guessing that November will see a

sideways movement. Then there will be

some buoyancy around Christmas and New Year.

But a clear picture will emerge only in January,

after Obama takes charge.

Mack: By the way, November 15 is the cut-off for

shareholders to notify fund managers their intentions

to cash out investments before year-end.

Divya: Analysts expect this could trigger second wave

of selling pressure and add to the volatility.

Mack: And if the cash-starved General Motors goes

down in between, things will turn worse.

Jogin: I have an idea. Maybe Tata should start

exporting Nano as soon as possible. That could earn

us precious foreign exchange, which will help

Indian market. Moreover, cheaper cars mean more

purchases and more money in the system. Eh!?

Bidyut: Maybe you should meet Ratan Tata with

your B-plans.

Mack: (Groans)

Ram with input from Badri, Lakshmi

Blog at http://MarketChat.blogspot.com

Related Stories:
Waiting game on for retail investors, but for how long?
Bear, bear, go away, retail investors want to play

More Stories on : Stock Markets | Economy | Chat

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
‘Insiders’ take advantage of low stock prices

Tata Motors, Sterlite suffer

Obama or Tata: Who can save the economy?

Oriental Bank (Rs 148.50): Buy

Day Trading Guide

Range-bound movement likely in short term