Mumbai, Oct 7: Behind the euphoria and celebrations on the bourses, a number of issues concerning the economy is bothering the broking community. For one, the expenditures incurred recently on the elction process and to counter the Pakistan intrusions at Kargil has to be met. Then the bulging oil pool deficit has to be contained and the recent diesel price hike might turn out to be insufficient. Also, given the initial reactions from some, the NDA allies to the diesel price hike, it seems the BJP might have to rollback some of the price hike.However, the market is optimistic these will be taken care of and that too with due care so as not to hurt the market sentiments. According to Ketan Desai at Asit C Mehta Investment Intermediaries, ``some harsh measures have to be taken by the incoming government. But I think that those measures would be timed with an accompanying good measure some of which are also pending.''
However, according to another broker, the investors should be cautious as the recent coalition of more than 20 parties might.
On the international front, the interest rate scenario at Europe is also concering some brokers. According to Rajiv Sampat at Parag Parikh Financial Advisory Services, ``we are expecting the European Central Bank to raise the interest rate. In that case, we can see some flight of funds from the US markets which again can impact the Indian market. Also the expenses incurred for the Lok Sabha polls and the Kargil intrusions would have to be tackled by the incoming government, which is a major concern." Arun Kejriwal of Woodstock Securities does not see a clear trigger after the 5000-level not sure of the timing of the FII inflows.
"Though profit booking will follow, a clear picture will emerge only on Tuesday or Wednesday. There's hardly any room for further positions," he added.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.