The Hindu Business Line : Portfolio changes: Analysts don’t see any big impact

Chennai/New Delhi/Kolkata, Nov. 30 Marketmen don’t see any big change in market movements in the coming weeks following the recent Cabinet changes. Mr P. Chidambaram will be India’s new Home Minister and the Prime Minister, Dr Manmohan Singh, would take over the finance portfolio for now, the Government said on Sunday.

Mr Sanjay Hegde, Executive Director of PricewaterhouseCoopers, said: “In an ordinary situation one needs a separate minister to handle the portfolio of finance in this country. We are now in an extraordinary situation of having to tackle issues of terrorism, global financial crisis and its impact on India, besides, high inflation. We need more minds to come together and decide on how to tackle this. But we are doing completely the opposite by putting responsibility on to one person. Although this person (Dr Manmohan Singh) may be experienced, the risk is he would be reliant on the bureaucracy, which had failed this country completely.”

According to Mr Gul Teckchandani, Independent Analyst, people are more concerned about the security and transparency about what the Government is going to do at the Central and State levels. “Changing a few people at the top level here and there is like shuffling deck chairs on the Titanic,” said Mr Gul Teckchandani. As both of them are good, there would not be any impact on the financial market, he added.

Mr Arun Kejriwal of KRIS Securities said: “Dr Manmohan Singh has done an act of genius by getting the resignation of the non-performing Home Minister and simultaneously replacing him with the underperforming Finance Minister.” The market will go up tomorrow rejoicing the exit of Finance Minister (Mr Chidambaram), Mr Kejriwal added.

Mr Sandeep Shenoy, Strategist, PINC Research, said, “I don’t think this will have any big impact on market, as the last Budget has already been presented.”

According to Mr Ajit Day of Dayco Securities, the taking over of the finance portfolio by the Prime Minister is definitely a positive factor for the market. Wordy standoff between Pakistan and India would perhaps largely be ignored because it may not cross the rhetoric level, he added.

Mr Ajay Jaiswal of Microsec said the war of words between Pakistan and India is unlikely to influence the market. He was also positive about Mr Singh taking over the finance portfolio.

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Portfolio changes: Analysts don’t see any big impact