1. Letters to the editor

Letters to the editor

Reforming Railways

By: | Published: August 31, 2015 12:14 AM

Reforming Railways
Isn’t it unfortunate that even in today’s connected world frequent train accidents are blurring the image of the Indian Railways? And it is not just about one train colliding with another, recently a train ran over some people who were crossing tracks. While the mistake can be attributed to those who took the track route to cross over to another side, isn’t it the job of the Indian Railways to construct foot-over bridges and service roads at relevant locations? Why do we call the Indian Railways one of the world’s largest and greatest organisations when it cannot even provide basic facilities to the passengers. After all, size does not make an organisation great. Doesn’t the Indian Railways have the required technology and funds to improve passenger services and strengthen the rail infrastructure?
P Senthil Saravana Durai

Staying invested
Apropos of the news analysis “Aug 24 market crash: Is there a lesson for retail investors?” (FE, August 28), it happened on August 24 that when panicky foreign investors were dumping stocks, domestic institutions went on a buying spree and bought stocks worth Rs 4,000 crore. In fact, the Sensex plummeted by a record 5.94%, or 1,625 points, that day. The fact is that domestic funds generally take sudden crash in markets as an opportunity to take more bets. But the question to be asked is, why are domestic players so confident? As the analysis points out, the confidence of domestic players stems from one crucial factor—sound economic fundamentals. Despite the crash, the markets and the economy are in a much better position in 2015 than they were in 2013 when they faced a brutal onslaught. Fund managers, in fact, go on to say that the current volatility has more to do with global risk aversion than with the health of our economy. Clearly, India is well placed to weather a contagion with room for providing stimulus through rate cuts, currency support through forex reserves and fiscal space opened by lower energy prices. Domestic institutions are following the principle that if you are an investor, stay invested. Selloffs—the kind of what happened on the August 24 crash—are a good opportunity to expand the basket.
BS Verma

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