Will The Hope Rally Fade Away?

For just about 2 months the Indian bourses have shrugged off all the things that are worrying the rest of the world. Institutional money is coming in, and today the Government raised about USD 1 Bn through the sale of a 9 per cent stake in Axis Bank. The currency has strengthened somewhat, inflation is down and so are commodities including Oil. All of these factors put together have brought about a surge in Equities and brought a general cheer to the investing class. To this intoxicating brew have been added the concoction called NDA-widely tipped to come first at the hustings in May 2014.

Here is where the trouble starts. Polls apart there are evident signs that the NDA is as much a force of convenience as are the other political alliances in the country. There is the unique spectre of a 86 year old politician being cajoled by party men atleast twice in the past 3-4 months, The first occasion was

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