stock markets in for a tough time

With the govt having a tough time taming inflation the indian stockmarket is going to have a tough time in the near term. What is even more worring is that the govt has till date artificially controlled inflation by keeping a controlled price on petrol, diesel, kerosene and LPG. But with the subsidy burden balloning beyond control we can expect an increase in the prices soon which is going to add to the already heavy inflation. This price hike may well take inflation near double digits forcing the govt to take further corrective action which could be by cutting of the money supply leading to heigher interest rates and inturn would hurt growth. All this scenerio is going to bring in bad days for the stock market. Todays results in karnatka elections could just make thing worse and there would be more pressure to take politically correct actions forcing the govt to keep growth at bay for the time being and purely focus on politics which is demanding lower inflation. So its time to be careful before investing in the market.