The Congress Government headed by DR Manmohan Singh is likely to crash land the Indian Economy. DEsperate to preserve the lost battle for Larges Ever Scams in the history of India, Government is unveiling Populist Measures. But where is the Money to fund the same ? Is the remotely controlled PM Driving the economy Italian Way to Crisis & Defaults ?
Forget the Food Security Bill which will burden the State Exchequer by an additional $10 Bn. Market Insiders who stay in touch with Power-brokers in New Delhi have heard that payments on rural loans have stopped being made because rural borrowers are anticipating another politically driven loan waiver scheme by the Manmohan Singh Government. Such a move would likely occur in the context of Indian growth estimates being downgraded from over 7% to the 5-6% range and also in the context of much higher NPL estimates. Banking Stocks have taken a severe beating today.
CLSA in a Research Report Published on Sunday said that BSE Sensex heading for 11,000 to 12,000 with INR heading towards Rs 60.
India now poses a growing risk of a banking problem at a time other Asian countries are not similarly affected. That would lead to even more market underperformance in the regional context in US dollar terms than what has so far been the case. Indian government spokesmen continuing to blame “Europe” for India’s problems this year is totally WRONG when, in truth, most of the problems are self-inflicted.