It was a sea of red at Dalal Street, as most stocks took a plunge as the rupee breached the Rs 65 and half barrier and the food bill passed in the Lok Sabha acting as a cloud cover over our economy, as more than a lakh crore would be spent if the bill were to be implemented in the years to come.
Election gimmicks are clearly at play as politicians dish out populist moves to appease the voters at the cost of the economy. Public sector banks are bleeding, with NPAs and bad debts, as money given to borrowers at the instance of politicians might never be recovered. Food rots in warehouses,while the poor starve to death.
Over Rs 5,500 crore of investor money have vanished at the National Spot Exchange (NSE) as the money given by the exchange to borrowers against commodity security guarantee has gone missing or was never there in the first place.
Investor confidence is at an all-time low as most investors have burnt their fingers badly. The finance minister and the various exchanges have been mere spectators as the mess continues to unfold. FIIs too are smelling a rat and are quietly withdrawing their funds, which has only put more pressure on the markets.
S N Kabra