Bombay Stock Exchange (BSE) has recorded a 1.9% rise on Monday, November 22 indicating that the investors are not worried about the political deadlock in India over 2G spectrum-scandal. Rather they have concentrated on the Ireland’s bailout programme, which feared will spread debt crisis to other highly indebted countries such as Portugal and Spain.
Broader National Stock Exchange (NSE – Nifty) has recorded 2.03% rise, once again crossing 6000 mark. On last Friday, the Sensex (BSE) was down by 1.7% with fears that the Prime Minister will resign on Supreme Court’s reprimand over his indecisiveness for 16 months and his denial for the prosecution of the former Telecom minister. The resignation of a market oriented Prime Minister will be a saddening news for markets.
The Comptroller Auditor General has implicated the Telecom minister in allocating 2G spectrum at cheap costs to a few chosen private companies on first-cum-first basis instead of going for auction. The CAG alleged the minister has caused the government to lose nearly $39 billion (Rs. 1.76 lakh crore) in revenue. The opposition parties are halting parliament proceedings for two weeks over the spectrum scandal demanding constitution of JPC (Joint Parliamentary Committee) to probe into the scandal.
Analysts say that those days of market fluctuations over political instabilities are gone and the investors are more concerned with fundamentals of the economy. But, it is not known how these analysts opined on Friday’s fall of Sensex and Nifty.
Meanwhile, it is learnt that the ruling and opposition parties have failed to come to an agreement in a meeting conducted on Monday. However, it is likely that these parties will eventually come to an agreement and get the stalled reform bills such as banks reform bill and a bill on sharing of profits with local communities by mining companies passed in coming days.