Dalal Street gets whiff of election results, surges like rocket
Dalal Street is said to be omniscient. It knows everything.
The super-surge on Friday sent the unmistakable signal that NAMO will effortlessly romp back into power.
The Bank Nifty surged a mammoth 594 points (2%) while the Sensex kept pace with a jump of 537 points.
Sensex rallies 537 points as D-St bets on Modi’s return https://t.co/9NFgfO6LKE
— TOI Business (@TOIBusiness) May 17, 2019
— Business Today (@BT_India) May 19, 2019
— Manak Gupta (@manakgupta) May 18, 2019
Shankar Sharma (who is rabidly opposed to NAMO) confirmed that the BJP is “winning hands down“.
“Looking at the stock market’ s move today, it’s clear that Exit Polls leaked, and that BJP is winning the Exit Polls hands down,” he exclaimed.
Looking at the stock market' s move today, it's clear that Exit Polls leaked, and that BJP is winning the Exit Polls hands down
— Shankar Sharma (@1shankarsharma) May 17, 2019
Basant Maheshwari confirmed this viewpoint.
Have the strong hands again frightened the weak & fearful? 300 points before the Exit poll; a few after; makes 23rd May an event to get people who buy on news. Curiously waiting to see if someone’s seen through the EVM….
— Basant Maheshwari (@BMTheEquityDesk) May 18, 2019
In Modi’s tenure, the Sensex has gained 57.25% till date, while the benchmark index rose 98% in 2014-19 and 140% in 2004-09 https://t.co/qNNFdn8iaX
— Livemint (@livemint) May 17, 2019
Does Arun Jaitley deserve a second term as Finance Minister?
The intellectuals on Dalal Street are not enthusiastic about Arun Jaitley being given a second term as Finance Minister.
This is because he is alleged to have bungled up badly on three occasions.
The first bungle is when he levied the dreaded tax on long-term capital gains (LTCG tax).
It may be recalled that many in the intelligentsia comprising of Shankar Sharma, Samir Arora and Basant Maheshwari had vehemently protested the move and warned that it will “kill the equity cult” in the Country.
However, Arun Jaitley persisted with the misconceived tax on the premise that “capital gains accrue without any effort” and deserve to be taxed.
Naturally, this move alienated several die-hard supporters.
WAS a Bjp Voter for last 30yrs.WAS.
— Deep Fry (@instantsamosa) February 1, 2018
— Gaurav Banga (@gauravbanga15) February 1, 2018
I am not going to make an effort to goto polling booth itself.. Simply meaningless.
— Vikas Joseph (@vikasgj) February 1, 2018
Also isnt it painfully ironic that the white skin FII’s coming from Mauritius gets a tax free status on their stock investments whereas the brown skin middle class which voted @BJP4India and @narendramodi to power is being taxed all over?
— Basant Maheshwari (@BMTheEquityDesk) February 1, 2018
Absolute joker. Ltcg without indexation? So pay tax on inflation?
— Subramoney.com (@pvsubramanyam) February 1, 2018
LTCG is most idiotic Proposal in this year's Budget by Modi Govt
Killed Market Sentiments
Screw up Fund Raising Plans of PSU & Pvt companies
Govt wont get any Tax during Fy 2018-19
Killed MF mobilisation & asset diversification
22 lakh cr Market Cap loss from the top
— Rishi Bagree ?? (@rishibagree) March 23, 2018
— Rishi Bagree ?? (@rishibagree) September 24, 2018
The second bungle is when he directed the PSU OMC Companies (and their investors) to bear the burden of the oil subsidy.
This wrecked investors’ confidence and lead to a massive sell-off.
A colossal fortune of Rs. 9 lakh crore evaporated into thin air in a matter of three days.
– Largest One Day fall since Aug 2015
– Ended in the Green on Mon, Shut on Tue
– Lost 692 Points in 3 Days. Biggest 3 Day fall since Jan 2018
– Lost 614 Points This Week (Biggest Ever Fall in Absolute Terms)
Sensex in last 3 Days
– Lost 2149 Pts; Lost 9 Lk Cr in MCap
— Mangalam Maloo (@blitzkreigm) October 5, 2018
The fury in Dalal Street was such that even Porinju Veliyath, who is very guarded in his criticism about the Government, lashed out at NAMO and Arun Jaitley.
He described the move as “unethical” and “penny wise pound foolish“.
A prudent thing would have been to keep OMCs away from subsidizing – instead raise 7000 Cr as an extra dividend from OMCs and bear full Rs.2.5 per litre cut. This could have saved Rs.1.32 lac cr. investor wealth, most of which is govt's own! @narendramodi
— Porinju Veliyath (@porinju) October 5, 2018
The third bungle is when he allowed the income-tax department to run amok and terrorize start-ups.
Such was the climate of fear created that even strong supporters of the Government like Mohandas Pai and Kiran Mazumdar Shaw had to protest vehemently.
Draconian Angel tax torturing startups: It’s killing genuine innovation
@PMOIndia @narendramodi @arunjaitley @sureshpprabhu @sanjeevsanyal Sir this has started again in big https://t.co/hwFttS1aZi intervene urgent https://t.co/a63XKp4sIa
— Mohandas Pai (@TVMohandasPai) December 18, 2018
@narendramodi Sir we need your direct intervention to solve the issue of tax terrorism for Angel Tax. The anger amongst start ups is very worrisome. Pl intervene. All the good work of govt through start up India is being negated! @PMOIndia we do not our innovators to go overseas https://t.co/04L1EzfCgx
— Mohandas Pai (@TVMohandasPai) December 19, 2018
Why is the Modi Govt blundering on the Start-up economy by recklessly introducing a tax on angel investments? This will only drive away investments overseas n starve Indian start ups. @NITIAayog n MoF r failing young entrepreneurs n even killing jobs. @PMOIndia @TVMohandasPai
— Kiran Mazumdar Shaw (@kiranshaw) December 21, 2018
Over 70% of India’s startups are in tax trouble from angel investments https://t.co/twgOeDErnU
— Quartz (@qz) February 6, 2019
“Tax terrorism” at its best where you just kill the startup and the jobs with it. How much money & energy would be wasted to get something abolished which shouldn’t be there in the first place. We are anti-efficiency.
— Sid (@siddbox) February 8, 2019
Subramanian Swamy should be appointed Finance Minister: Basant Maheshwari
Basant Maheshwari is known for his ability to think out of the box.
He recommended that NAMO should appoint Subramanian Swamy, the firebrand RSS leader, to be the new Finance Minister.
If the economy doesn’t improve quickly our 47% population < age of 25 changes to a demographic curse. People without work will only engage in unlawful activities. @narendramodi if voted back should give FM post to @Swamy39. Need out of the box thinking – fast. Time’s ticking ….
— Basant Maheshwari (@BMTheEquityDesk) May 12, 2019
Subramanian Swamy gracefully accepted the proposal.
He opined that the economy is on “verge of a precipice or cliff” and “cannot be rectified by mediocre novices“.
I agree that economy is on verge of a precipice or cliff. It cannot be rectified by mediocre novices.
— Subramanian Swamy (@Swamy39) May 18, 2019
The RSS should use its veto for you. If being above a certain threshold age (75 years) ok to fight in the courts for Ram Mandir and National Herald it’s also good enough to carry on the post of the FM – before it’s too late.
— Basant Maheshwari (@BMTheEquityDesk) May 18, 2019
Basant’s proposal is endorsed by many.
Whole India wanted u as FM last 5 yrs itself sir… This was one of the disappointment from BJP govt… But at least now we expect the justice to be done
— Dr Priyanka S (@PSujaykumar) May 18, 2019
If and when Dr Swamy becomes FM, it will be an epoch making time for Bharat. 1991 proved it already. Political economy of Bharat will show a great renaissance under @Swamy39
— Krishnan Parameswaran (@krishnanp1973) May 19, 2019
BJPs win this election will make a difference only if @Swamy39 is made the FM of India. Otherwise it won't be of much use.
— Jatin Anand (@__iamironman) May 19, 2019
Finance & Defence Ministry both shud be given to Dr Swamy. Novices cannot handle these ministries.
— Chowkidar Viju (@vijendravarde) May 18, 2019
— Murari Bhartia (@muraribhartia) May 18, 2019
Subramanian Swami has made it clear earlier that he does not have a high opinion about Arun Jaitley’s policies.
“I don’t understand Arun Jaitley’s economics,” he stated bluntly.
He has also claimed that the Cabinet Ministers “know nothing about economics“.
India needs vigorous market-centric economic reforms: Subramanian Swamy
Subramanian Swamy has written a detailed paper titled “An economic agenda for India 2020” in which he has explained his game plan.
He has argued that the “Indian financial system suffers from a hangover of cronyism and corruption that have brought the government budgets on the verge of bankruptcy“.
He has also pointed out that there is a need for “more reforms“.
“… more vigorous market-centric economic reforms to dismantle the vestiges of the Soviet model in Indian planning, especially at the provincial level, are required,” he states.
He has also pointed out that India has a “demographic dividend” in the form of its young population.
“Globally, India today leads in the supply of youth — persons in the age group of 15 to 35 years — and this lead will last for another 40 years. We should not, therefore, squander this “natural resource”. We must, by a proper policy for the young, realise and harvest this demographic potential,” he has advised.
— Shrikanth Kotian (@shrikomang) May 16, 2019
What about Piyush Goyal as Finance Minister?
Some intellectuals have proposed that Piyush Goyal be appointed Finance Minister.
Piyush Goyal is a rank-holder Chartered Accountant and has a deep understanding about macro-economic issues, it is claimed.
I really wish Piyush Goyal become permanent Finance Minister as Arun Jaitley has lost connect with the masses.
Not giving relief to Middle class in the election year & imposing LTCG (thus killing Market sentiments) is the low point of his ministry.
Hope PG reins Tax terrorism
— Rishi Bagree ?? (@rishibagree) May 14, 2018
Piyush Goyal is named as interim Finance Minister. A proud moment for the Chartered Accountant community of India. A brilliant mind, a scholer & a wonderful human. Having said that, hope Arun Jaitley gets well soon & resumes his job
— Ra_Bies (@Ra_Bies) January 23, 2019
Prima facie, it appears that Dalal Street will be happy if either Subramanian Swamy or Piyush Goyal are appointed Finance Minister. Even Arun Jaitley is acceptable provided he takes a vow not to commit blunders similar to that of LTCG tax or OMC subsidy and leaves Dalal Street alone from any fiscal machinations!