Notes on Indian equities, sectors and economy

Talking up the Markets: Recap of FM’s statement

Posted by fairval on February 11, 2011

On 10 September 2010, the FM Pranab Mukherjee made this statement (see the earlier post):

Average Industrial growth this fiscal will be be between 12 and 13 percent, given the good showing of the labour-intensive manufacturing sector

Now it is clear that IIP will end up at around 8%. Advance estimates of the GDP peg it at 8.1%. I think that is a reasonable number. My range is 7.6% to 8.3%.

How shamelessly our politicians play the market. Now they are doing the reserve. I strongly feel this IIP data is rigged to further pull down the markets


2 Responses to “Talking up the Markets: Recap of FM’s statement”

  1. Why would they want to pull down the markets?

  2. fairval said

    Government is the ultimate inside trader. They control important newsflow. So easy for them to play the markets. And at this time, with elections far away, they can easily do this. Besides, I dont think value of Sensex has any bearing on result of general elections.
    Why do you think commies (CPM) were making all kinds of statements in UPA-1, and rocking the markets every now and them? Some of the commies are said to have huge amounts of money in the market.

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