oppn parties Economy In Doldrums, Stocks Bleed

News Snippets

  • Delhi Additional district judge Nikhil Chopra says there is no legal right for people seeking to worship deity inside Qutab Minar, says it survived 800 years without worship so "let it survive like that"
  • Punjab chief minister Bhagwant Mann sacks state health minister Vijay Singla over corruption charges. Singla was later arrested by the ACB
  • Protestors burn the house of Andhra minister P Viswaroop and MLA Satish Kumar over renaming of Konaseema district as B R Amberdkar Konaseema
  • Gyanvapi: Varanasi district judge decides to first hear the 'maintainability' plea filed by mosque management
  • Delhivery and Venus Pipes shares list at premium of 10% and 8.7% respectively even when market sentiment was down
  • In a bid to cool edible oil prices, Centre allows duty-free imports of 20 lakh tonnes each of crude sunflower oil and crude palm oil per annum this year and next
  • Centre caps sugar exports to ensure availability of stocks in the domestic markets to cool prices
  • Stock markets get the jitters as RBI signals rate hike and government moves in to control inflation: Sensex tumbles by 236 points to 54052 and Nifty goes down by 89 points to 16125
  • IPL: Lucknow Super Giants to meet Royal Challengers Bangalore in the first Eliminator today. Winners to take on Rajasthan Royals for a place in the finals
  • IPL: Sensational David Miller blasts three sixes off the first three deliveries of the last over to help Gujarat Titans beat Rajasthan Royals by 7 wickets and enter their maiden IPL final in their debut year
  • While joining US-led IPEF, PM Modi says it will bring "peace and prosperity in the Indo-Pacific region"
  • Mamata Banerjee says Bengal government will not lower VAT as the excise cut by the Centre will already reduce state's revenue by Rs 641 cr
  • Mamata Banerjee says Central agencies must be made autonomous to save democracy
  • While commuting the death sentence of 2 men and 1 woman, the Supreme Court says convict's conduct before and after crime is vital for death penalty
  • Health minister Mansukh Mandaviya slams the Covid death report of WHO at the 75th session of World Health Assembly in Geneva
US President Joe Biden says India-US ties to be among "closest on earth" //////// China and Russia send bombers near Japan even as Quad leaders were holding meetings there /////// Gujarat Titans enter IPL finals in style, beat Rajasthan Royals by 7 wickets
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Economy In Doldrums, Stocks Bleed

By Ashwini Agarwal

The stocks are continuing to bleed, eroding investor wealth and confidence. Today, the Sensex went down by 470.14 points to 36,093.47, down 4219 points from its all-time high. The Nifty50 fell 11.5 percent from the record high touched in June, 2019 closing 135.90 points lower at 10,704.80. This is the lowest level since February 19, 2019. The market was in a consolidation phase for the last few weeks but the bears once again embraced it in a tight hug in the last couple of days.

Even as the government announces 'schemes' to revive the economy, the markets continue to show no-confidence in the measures. Foreign funds are liquidating their investments in Indian stocks at a rate that is alarming. The time for knee-jerk response is over, investors seem to be saying. But is anyone in the government listening? Probably not. For, although finance minister Nirmala Sitharaman has said that she is working on it, one feels that the government is not attacking the root of the problem.

The government seems to have decided that this economic depression is cyclic. But most analysts feel that it is also structural in nature. Hence, structural reforms are required but there is nary a whisper from the North Block about any such measures. The GST regime needs to be simplified and the tax base broadened by plugging loopholes. It is also required that no sector is left exempted from GST, if not immediately then within a given time frame. Then, the government must take an immediate decision to sell Air India and BSNL to stop public money from being wasted. Divestment in PSUs must also be prioritized. Land and labour reforms, hanging fire since the first term of the NDA, cannot be postponed now if the dream of being a $ 5 trillion economy by 2024 is to be realized. Norms for public-private partnership in infrastructure projects must be announced forthwith and such projects must be fast-tracked. The government must boost domestic investment to spur consumption, without which the economy is not going to come out of this deep tunnel of despair and gloom.