Tread with caution

The govt has won the trust vote and the road for the reforms seems to be clear now. The only disturbing factor is that the time available is very less. The left parties have eaten in to four and a half years in to the indian progress and with just six months in hand the task is uphill. The finance minister has already hinted on the insurance sector and financial sector reforms apart from efforts for disinvestment. I personally feel that six months would not be time enough for any major disinvestment drive. But if the govt can prove that it is serious on the reform front the markets are sure to support any such moves. We might also see some measures like the one proposed by samajwadi party windfall tax. By the very term this seems to be an interesting way and moreover something which would be widely accepatable to the public that the private sector which is making good money while public sector companies are bleeding do share some burden. I have also seen that the govt planners have come face to face with the facts that they need to cut down wastages and plug loopholes which lead to demand in fuel. The policy which is likely to charge excise based on fuel effeciency would be just sending the right signals and manadatory use of green energy would too play its role in reducing dependency on crude. I would suggest the the investors now make infromation based moves and invest in those companies which are likely to benifit from the reforms.