stock market in for a toss

The indian stock market is in for hard times keeping in mind the current scenerio where in there are a combintion of political, local and international economic pressures on the system. The economists seem to have a hard time trying to balance between them all and till date with no results. The congress loosing elections in karnatka has just added to the woes. The fertiliser subsidy, loan wavier for farmers, rising fuel subsidy is just threatening to take the fiscal deficit out of control. All this could lead to a fall in the growth in the economy. What is very much worring is that the FII's are pulling out money out of the indian stock markets even today when the ruppee has depreciated and the stock market are nearing the january lows. This means that either they are busy booking their profits or they feel that the indian markets are not the best choice and their attitude towards the indian markets could mean a further downslide for the markets as they are surely largely dependent on the large foreign input they got in the past and had a long bull run. Now with the things just reversing this may be the bears time to celebrate for sometime now unless oncourse the govt takes some concrete steps to check the increasing fiscal deficit. This requires great political courage and it seems to be missing. Most actions are focousing on keeping allies happy so that the govt keeps going and this has slowly led to a situation which is now too tricky to solve in a single go. Lets hope tomorrows meeting on the fuel price hike is successful and the govt sends a message that its serious about the economic crisis we are in.