Thursday, September 10, 1998
The time to act is now
Global equity markets continued their slide as August took leave of us. The end is yet to be sighted. Even some of the Nasdaq heavyweights (Cisco, Microsoft and Dell computers) have been shaken badly. Two days of decline totalling nearly l,900 points on the Dow in 3 trading days means that time for euphemisms is over. It is no longer a correction.
A step forward
The decision to allow Indian business to enter into standard futures contracts for agricultural commodities and metals abroad is an advance towards market economy. Import prices fluctuate sharply. Futures contracts will enable importers to assess the risk of price fluctuation and take advance action.
Identify problem
The government plans to relax the foreign-equity cap on refinery projects from the current level of 26% to 50%. The idea is to increase foreign investments in the sector, part of the government's objective of inviting foreign participation in core areas.
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