The Budget Chat
'The Sensex will boom'
The trascript of the Budget chat held hours after Finance Minister P Chidambaram
delivered his speech in Parliament on Monday, July 22.
SKT (MON JUL 22 19:47:14 1996 IST):
lop
LANM (MON JUL 22 19:57:03 1996 IST):
Hey guys, when will this Chat begin?
LANM (MON JUL 22 19:57:40 1996 IST):
Hullo. I thought the Budget was very disappointing. Manmohan
Singh where art thou?
LANM (MON JUL 22 20:00:20 1996 IST):
Anyone there?
YAZAD (MON JUL 22 20:01:36 1996 IST):
LANM: Just about ready to roll, hold on for a sec? And thanks
for dropping in, friend...
INDIA TODAY (MON JUL 22 20:02:40 1996 IST):
This is Saurav Sen from India Today. Anyone there? Can we
have the dramatis personae pls???
YAZAD (MON JUL 22 20:03:49 1996 IST):
hi guys, we're ready to go right away. but wait, we've got
a celebrity here with us -- Mr Raghu Palat -- who is the head
of the Bank Internasionale Indonesia. Mr Palat, what is your overall
view of the Budget?
RAGHU PALAT (MON JUL 22 20:04:58 1996 IST):
My overall view is that the budget was unexciting, bland and
disappointing. It was populist in nature and will not really help
the capital markets or industry for that matter.
LANM (MON JUL 22 20:05:15 1996 IST):
Is this the same Mr Palat, who has written a couple of books
on investment?
LANM (MON JUL 22 20:05:44 1996 IST):
When are the other guys coming in?
RAGHU PALAT (MON JUL 22 20:05:44 1996 IST):
LAMN: Yes. I hope you enjoyed them.
YAZAD (MON JUL 22 20:06:01 1996 IST):
SAURAV: thanks for dropping in. what do you have to say about
the budget? Do you agree with Mr Palat?
INDIA TODAY (MON JUL 22 20:06:16 1996 IST):
Mr Palat, do you think the budget hints at continuity in reforms,
at the same pace?
RAGHU PALAT (MON JUL 22 20:06:25 1996 IST):
LANM: In half an hour
AB (MON JUL 22 20:06:42 1996 IST):
Did the FM have options or has he taken the line of least
resistance ?
YAZAD (MON JUL 22 20:07:30 1996 IST):
Mr Palat, i thought that there were a few sparks in the budget.
like the corporate tax surcharge being halved. like the sops on
the long-term gains tax front. won't these enthuse the stock market?
RAGHU PALAT (MON JUL 22 20:07:48 1996 IST):
India Today: Although there is an intention for continuity
in reforms, I don't think it will progress at the same rate as
it doesn't encourage large capital investment or FDI.
LANM (MON JUL 22 20:07:49 1996 IST):
They were useful reading for an NRI. But why did Mr Chidambaram
produce such insipid stuff? Did he get scared of the
Marxsists? These bloody Communists will ruin the country!
INDIA TODAY (MON JUL 22 20:09:19 1996 IST):
But still, efforts have been made, despite the pulls of political
contradictions, to assuage the salaried class? Could have been
better of course...
LANM (MON JUL 22 20:09:24 1996 IST):
Do you think, Mr Palat, that this Budget will put us behind
the other developing markets by five years?
AB (MON JUL 22 20:09:42 1996 IST):
Folks,what would u say r the 3 main items in the budget?
YAZAD (MON JUL 22 20:10:15 1996 IST):
AB: sorry to preempt mr palat, but i feel the budget was simply
a trial balloon floated by mr chidambaram to see how his
government partners would react, and to see which direction his
next budget should take. perhaps we can expect something
more revolutionary next year?
INDIA TODAY (MON JUL 22 20:10:38 1996 IST):
Dont you think with the profile of the coalition, we could
have actually expected worse stuff?
RAGHU PALAT (MON JUL 22 20:10:50 1996 IST):
Yazad: The corporate tax surcharge was brought in for a totally
different purpose and should have been aboloshed years ago.
Even though it was halved, MAT has been introduced, and I don't
think the capital gains incentives are really all that exciting.
ab: I think the Finance Minister has taken the line of least resistence.
He probably didn't have any other choice as he had to
satisfy so many parties with diverse views and priorities.
RAGHU PALAT (MON JUL 22 20:10:51 1996 IST):
Yazad: The corporate tax surcharge was brought in for a totally
different purpose and should have been aboloshed years ago.
Even though it was halved, MAT has been introduced, and I don't
think the capital gains incentives are really all that exciting.
ab: I think the Finance Minister has taken the line of least resistence.
He probably didn't have any other choice as he had to
satisfy so many parties with diverse views and priorities.
AB (MON JUL 22 20:11:08 1996 IST):
Folks,what would u say r the 3 main items in the budget?
LANM (MON JUL 22 20:11:14 1996 IST):
Yazad, whoever you are:There may not be a second Budget for
Mr Chidambaram. He will be another Yashwant Sinha!
YAZAD (MON JUL 22 20:11:35 1996 IST):
the three main items? the outlay on education. the thrust
on anti-poverty programmes. the MAT on company profits.
AB (MON JUL 22 20:12:18 1996 IST):
sorry,message rptd by mistake
LANM (MON JUL 22 20:12:41 1996 IST):
Saurav: I think Mr Chidambaram is made of sterner stuff. I
think he just kow-towed to these regressive forces, the Mulayam
Singhs and the Yechuris.
YAZAD (MON JUL 22 20:12:51 1996 IST):
LANM: perhaps dear mr chidambaram may have a second budget.
especially if the political equation swings in such a way that
the congress returns to power after the Tamil Maanila Congress
merges with it!! what do you think?
RAGHU PALAT (MON JUL 22 20:13:51 1996 IST):
India Today: Probably, but then the fortunate factor is that
we do have Mr. Chidambaram as the Finance Minister, and he has
done the best he can in difficult circumstances. LANM: In regard
to whether this would set us back, it depends on the
countries you are talking about. If it is countries such as Malaysia,
most definitely. It really depends on the country you are referring to.
LANM (MON JUL 22 20:14:11 1996 IST):
Yazad: I doubt it! Why would the Congress-TMC settle for Chidambaram
when nthey can have the real thing? The good
doctor himself.
LANM (MON JUL 22 20:15:09 1996 IST):
Mr Palat: Mr Chidambaram spoke of attracting $ 10 billion
in FDI annually. Do you think this is possible with this Budget?
RAGHU PALAT (MON JUL 22 20:15:12 1996 IST):
ab: I think the three main items in the budget is containing
the deficit to five percent, reducing the surcharge payable by
corporates and permitting the companies to issue non-voting shares
which they can redeem after 20 years.
YAZAD (MON JUL 22 20:15:56 1996 IST):
LANM: the good doctor may not be such a hot political entity
anymore. besides, chidambaram is viewed as younger, moredynamic. no?
GANDHI (MON JUL 22 20:16:06 1996 IST):
Mr. Palat they say that the BSE is never happy would u agree
RAGHU PALAT (MON JUL 22 20:16:36 1996 IST):
LANM: No, this budget will not be able to attract ten billion
dollars. Having said that, as there is some interest in India,
inspite
of this budget there will be some FDI.
YAZAD (MON JUL 22 20:16:52 1996 IST):
hey guys, there's another star rising on our horizon. mr pashipati
advani has arrived and ready to give you the lowdown on
what he believes the budget means to us.
LANM (MON JUL 22 20:17:00 1996 IST):
Mr :Palat: As head of a foreign bank, where would you place
India among the developing markets of Asia?
RAGHU PALAT (MON JUL 22 20:17:39 1996 IST):
Gandhi: I do not agree with that at all. The last few budgets
of Dr Manmohan Singh made the BSE as ecstatic as they are
capable of being.
MR.PASHUPATI ADVANI (MON JUL 22 20:18:29 1996 IST):
Hi guys, I am a happy BSE Broker - I think that this is a
a great market budget. Reliance has closed at 249.50
RAGHU PALAT (MON JUL 22 20:18:30 1996 IST):
LANM: I would say that India has probably the greatest potential
among all the emerging nations. However, we as a nation
are our own worst enemies.
MR.PASHUPATI ADVANI (MON JUL 22 20:19:16 1996 IST):
Hi guys, I am also a happy NSE broker NSE shut an hour earlier
Reliance closed at 248.
YAZAD (MON JUL 22 20:19:45 1996 IST):
mr advani, reliance may have closed higher only because of
the operation that is going on in the scrip at the moment, isn't
it?
what about other pivotals?
FIRST WORLDER (MON JUL 22 20:19:58 1996 IST):
Mr P: this matter of nonvoting shares- how bi a deal is this?For
whom?
FIRST WORLDER (MON JUL 22 20:20:21 1996 IST):
bi=big
LANM (MON JUL 22 20:20:36 1996 IST):
Mr Advani, so will the Sensex boom?
RAGHU PALAT (MON JUL 22 20:21:16 1996 IST):
First Worlder: This will help raise capital and also help
the promoters and management to retain control without fear or
threat
of a takeover.
LANM (MON JUL 22 20:21:41 1996 IST):
Mr Palat: Let us stop being patriotic. Does this Budget put
us back or not? I need to know because I plan to return to India
soon.
YAZAD (MON JUL 22 20:22:00 1996 IST):
frankly, what i would like to know is, how will this budget
affect inflation and prices. and how will this affect interest
rates? mr
palat?
MR.PASHUPATI ADVANI (MON JUL 22 20:22:06 1996 IST):
With regard to new FII investment -- it was a great disappointment
that the FII ceiling was not raised to 49% a la the
Indonesian model. The point of allowing single FIIs to buy 10%
instead of 5% as before is not understood -- perhaps one of
you people can enlighten me. FIIs investing in unlisted securities
is good for infrastructure - I guess
FIRST WORLDER (MON JUL 22 20:22:36 1996 IST):
Will the public buy these nonvoting shares?Will they trade
at a discount?
RAGHU PALAT (MON JUL 22 20:23:07 1996 IST):
LANM: First off, where are you from? AS to your question,
I don't think the budget really puts us back - but it doesn't
take us
forward either. Go ahead and book your ticket, we need you to
maybe give us the forward push...
MR.PASHUPATI ADVANI (MON JUL 22 20:23:41 1996 IST):
LANM: The Sensex will boom We are quoted on Reuters a month
ago that the SENSEX will be at 4135 by the end of July I
think I will be close
RAGHU PALAT (MON JUL 22 20:24:16 1996 IST):
First Worlder: These will probably be bought by the larger
financial institutions. They may also be such that they would
give
preferential dividends and maybe used as an investment alternative
by individuals.
LANM (MON JUL 22 20:25:33 1996 IST):
Mr Advani: In which industries would you recommend investment?
MR.PASHUPATI ADVANI (MON JUL 22 20:26:48 1996 IST):
Yazad: There has been actual FII buying at lower levels leading
to a slight technical overbought position However, Reliance
does seem to have some benefits in excise duties - as opposed
to the tax that will have to be paid.
MR.PASHUPATI ADVANI (MON JUL 22 20:26:48 1996 IST):
RAGHU PALAT (MON JUL 22 20:27:03 1996 IST):
Yazad: The recent hike in petroleum prices and high interest
costs due to the il-liquidity in the markets will ensure that
inflation
will go up. Interest rates will probably remain at the present
levels until the next credit policy is announced in September
YAZAD (MON JUL 22 20:27:43 1996 IST):
LANM: have you checked out the NRI Zone on Redif On The Net?
I'm sure there will be a lot of things there that would be
of interest to you. especially before you return. and if you hang
on till 9 (IST) Mr a n shanbhag will be with us on chat, so you
can pick his brains too a bit.
AB (MON JUL 22 20:27:49 1996 IST):
Mr Advani:what is the basis of yr optimism on the Sensex?
LANM (MON JUL 22 20:28:05 1996 IST):
Mr Palat: Do you think the Marxists will asphyxiate Chidambaram's
functioning? Perhaps even throwout Coke.
RAGHU PALAT (MON JUL 22 20:29:17 1996 IST):
LANM: No, but I think the FM will find it very difficult to
function. No, I do not think Coke will be thrown out, because
the
repercussions are too horrendous to contemplate. By the way, WHERE
ARE YOU FROM?
MR.PASHUPATI ADVANI (MON JUL 22 20:29:23 1996 IST):
LANM: Any industry that will benefit from infrastructure investment
like Larsen ( L & T ), ABB, BHEL, SIEMENS, GEC -
Alstrom, Hind Const, Simplex Concrete. Others that will benefit
are automobile and auto ancillaries - as they were expected
to be taxed and were not
YAZAD (MON JUL 22 20:29:42 1996 IST):
hey, they cannot throw out coke without sending the message
that foreigners are not welcome. and that would make it dificult
to raise money for infrastructure projects.
LANM (MON JUL 22 20:30:23 1996 IST):
Mr Palat: Guess you are new to Chat. We internauts like to
preserve our anonymity.
LANM (MON JUL 22 20:31:03 1996 IST):
Yazd: I love Coke, man. They can kick out Pepsi if they want.
MR.PASHUPATI ADVANI (MON JUL 22 20:31:07 1996 IST):
AB: Brokers make more money in BULL markets !!!
YAZAD (MON JUL 22 20:31:07 1996 IST):
mr palat, is the outlay for infrastructure really enough in
the budget, or is it just an indicator to the trend in the next
couple of
years?
RAGHU PALAT (MON JUL 22 20:31:29 1996 IST):
LANM: Sure, but do Internauts even fight shy of revealing
their location? Just asking...
YAZAD (MON JUL 22 20:32:01 1996 IST):
LANM: i guess we come from opposite poles. i think coke is
merely hyped. pepsi is the REAL real thing.
YAZAD (MON JUL 22 20:33:20 1996 IST):
mr advani, we seem to have gone back a step by introducing
the Minimum Alternate Tax. will this make too big a dent in corporate profits?
RAGHU PALAT (MON JUL 22 20:33:34 1996 IST):
Yazad: I don't think the outlay is adequate. Because our roads,
communication systems etc need a lot more to bring it up to
state of the art. The government is hoping that the new infrastructure
companies floated will raise the money. They may, but
there will be a long gestation. I would have preferred if the
government gave incentives to industry or to companies abroad
to
develop these very essential services.
LANM (MON JUL 22 20:33:41 1996 IST):
Mr Palt: not from Indonesia, I assure you!
RAGHU PALAT (MON JUL 22 20:34:25 1996 IST):
LANM: Wow.... *deep sigh of relief here*
YAZAD (MON JUL 22 20:35:36 1996 IST):
mr palat, what kind of incentives do you see? for foreign
companies planning to enter infrastructure, i mean. and won't
giving
such incentives make the indians scream about level playing fields
again?
HKINDIAN (MON JUL 22 20:36:14 1996 IST):
Hey,u chaps in Bombay,how did the stock market react to the
budget?
RAGHU PALAT (MON JUL 22 20:37:08 1996 IST):
Yazad: The FM hasn't announced any incentives other than the
incentives that he will give these new corporations being set
up.
I don't think the Indians will scream about level playing fields
because they have become much more mature now.
LANM (OULD BE SOLD ONLY ON THE PAVEMENTS OF INDIA. THE >
ONLY REASONRAGHU PALAT IST):
> Date: Thu, 18 Jul 1996 16:12:33 -0300 > From: Dwarak
Punja > To: chat@redif.rediff.co.in > Subject: Re: The Annual
Budget 1996-1997 > Chatmaster wrote: > > > > Dear
Friend > > The Annual Budget in India has traditionally
been an Event
in all > > possible forms, more so after the Congress government
began a process of > > economic restructuring that would
cut out the deadwood and instill some > > mobility into
the Indian economy. > > This year's Budget has sparked even
more
interest, given that it is the > > first (and perhaps the
last?) from a coalition -- the United Front -- > > whose
economic policies
are far from crystallised. Will the Budget > > strangle
the entry of multinationals and foreign capital? Will it >
> introduce some
meaningful austerity in the spendthrift bureaucracy? Will >
> it restructure the monolithic and capital-hungry public sector?
Will
it > > rein the deficit to a manageable percentage of GDP?
Will it be able to > > raise revenues without raising taxes?
> > Or
will it trod escapist middle path and assuage its myriad vote
banks? > > Find out all about it on the Budget Special Chat
on
Rediff On The NeT. > > July 22, 2100 hours IST (1130 hours
EST). > > Rediff On The NeT - www.rediff.co.inHello there
>
> I am a recent immigrant to Canada from India. One of things
that I have > noticed among the NRI's here is there immense
capacity to put India down > in every conceiveable manner.
I am talking of professional Indians here > holding good positions.
The fact is these people have been away from > India for so
long and had left straight out of school or college that >
they have
no experience about actual Indian conditions. > > I am an
Engineer with about 12 years of experience in India, and do know
>
of most conditions in India. > > Quality - a common complaint
is that all products in India are > sub-standard. This is just
not
true. 90% of the stuff here is of such > poor quality that
they would be sold only on the pavements of India. The > only
reasonRaghu Palat
SKT (MON JUL 22 20:39:19 1996 IST)
:-o
RAGHU PALAT (MON JUL 22 20:39:20 1996 IST):
Dwarak Punja: Is this e-mail? hate mail? Or just a space filler?
Sorry, chap, could you frame your question in normal mode?
Thanks...
YAZAD (MON JUL 22 20:39:29 1996 IST):
Dwarak Punja: Hey guy, come in from teh cold. we didn'y get
your message too clearly, although you seem to be making
some valid patriotic points. can you send again?
MR.PASHUPATI ADVANI (MON JUL 22 20:40:28 1996 IST):
HK Indian: This was not as reactionary as normal. Overall,
the market liked it -- the SENSEX was up to over 3800.
Tomorrow will tell -- as educated, enlightened souls burn the
midnight oil to decipher this budget.
LYN (MON JUL 22 20:41:47 1996 IST):
Hi guys. How was the Budget? Fish or Fowl?
YAZAD (MON JUL 22 20:41:48 1996 IST):
mr advani: we'll need to burn more than midnight oil. just
to find some spark in the budget.
YAZAD (MON JUL 22 20:42:39 1996 IST):
lyn: welcome aboard. it sticks like a fish. squawks like a
fowl. basically neither.
RAGHU PALAT (MON JUL 22 20:42:51 1996 IST):
Lyn: More like the curate's egg - good in parts. But not in
many parts, more's the pity!
HKINDIAN (MON JUL 22 20:43:37 1996 IST):
mr advani-pl burn some of that oil now-whats in this budget?
YAZAD (MON JUL 22 20:43:38 1996 IST):
skt: what's shocked you so much? the budget, or the way we're
ripping into it?
SHAILU (MON JUL 22 20:44:38 1996 IST):
Hi friends: what kind of message this budget sends for a common
man?
RAGHU PALAT (MON JUL 22 20:45:31 1996 IST):
Shailu: The common man should be hung and quartered. Hey,
not me, that's the FM saying it...
DWARKA (MON JUL 22 20:45:41 1996 IST):
From: Dwarak Punja I am a recent immigrant to Canada from
India. One of things that I have noticed among the NRI's here
is
there immense capacity to put India down in every conceiveable
manner. I am talking of professional Indians here holding
good positions. The fact is these people have been away from India
for so long and had left straight out of school or college
that they have no experience about actual Indian conditions. I
am an Engineer with about 12 years of experience in India, and
do know of most conditions in India. Quality - a common complaint
is that all products in India are sub-standard. This is just
not true. 90% of the stuff here is of such poor quality that they
would be sold only on the pavements of India. The only reason
why it does not show here is because you can return whatever you
want - big deal. Unhygenic conditions - we use water and
people here use paper. the story goes on and on. I think NRI's
need to be educated and not pampered. The NRI's are plain
blind not to put their money in fixed depoisits in India, for
the interest rates there. "Reason - what if the bank folds
after all
anything is possible in India." I ask them can they give
me one instance of an Indian bank folding up and there is silence.
If you
want me to go on and on let me know. Our countrymen here need
education at grassroots. Dwarak Punja e-mail:
dwarak@atcon.com
RAGHU PALAT (MON JUL 22 20:47:53 1996 IST):
D Punja: Thanks, now could you send copies of this to leading
Canadian papers and other media outlets? We figure from your
note that it is the Indians out there that need telling, not us
here.. We believe in India, that's why we're here.
TECHN (MON JUL 22 20:48:11 1996 IST):
Have they done anything for the venture capital industry?
SHAILU (MON JUL 22 20:49:42 1996 IST):
hey that's very bad, It was expected to be a more populist
budget? what do you all think ...
RAGHU PALAT (MON JUL 22 20:50:13 1996 IST):
techn: Only in regard to SIDBI, but no incentives have been
given to entrepreneurs to create venture capital funds.
YAZAD (MON JUL 22 20:50:38 1996 IST):
shailu, if you think this was not a populist budget, perhaps
you need to read the FM's speech again. it was populist to the
hilt!
RAGHU PALAT (MON JUL 22 20:51:15 1996 IST):
Shailu: Nothing could be more populist than this. Unless Jyoti
Basu and others were to be given cash incentives for being who
they are.
LYN (MON JUL 22 20:51:16 1996 IST):
What is amazing is that all you guys are only concerned about
FDI and venture capital and sensex and all that stuff. But what
about all those poor Indians? Don't you care about them? Don't
you guys realise that India will erupt if you don't look after
these peop;le?
LYN (MON JUL 22 20:52:21 1996 IST):
I amaze at all you big shots. I am not saying don't make money,
but look after the poor, for Chrissake. All this imbalance is
going to lead to a social catastrophe!
RAGHU PALAT (MON JUL 22 20:53:07 1996 IST):
Lyn: We only analyse the budget, friend - we don't make it.
Additionally, we are looking at how the economy will grow, which
is the need of the hour. The poor man has really been looked after
in this Budget. It is the others we are concerned about. Like
the salaried employees, for instance.
MR.PASHUPATI ADVANI (MON JUL 22 20:53:13 1996 IST):
HK INDIAN:
YAZAD (MON JUL 22 20:53:47 1996 IST):
hey, lyn, it seems every heart blleds for the 'poor indian'.
except for the poor indian himself/herself. the poor indian is
more interested in somehow becoming a rich indian.
RAGHU PALAT (MON JUL 22 20:54:15 1996 IST):
Lyn: The economy has to be developed before imbalances are
corrected. History will teach you that. Look at the industrial
revolutions in the UK and the USA.
KRISH (MON JUL 22 20:54:42 1996 IST):
Does anyone mind summarizing for me what the budget said-I
emean one is far away and not quite sure what has happened..
YAZAD (MON JUL 22 20:55:18 1996 IST):
lyn, don't you think that if there is overall growth the poor
indian too will benefit? instead of giving him fish, we should
teach him
how to fish. yeah, yeah i know - corny as hell
RAGHU PALAT (MON JUL 22 20:56:29 1996 IST):
Krish: In one short sentence, highly populist and politically
motivated. Very bland. Totally unexciting.
LYN (MON JUL 22 20:56:39 1996 IST):
Please don't be frivolous about this. It's serious, dammit!
Can't you guys see? India is headed for catastophe, and there
won't
be anything if it does. No sensex. No coke. no nothing.
YAZAD (MON JUL 22 20:57:14 1996 IST):
krish: how far away are you? anyway, a bland, political motivated,
pro-poor, pro-truck drivers, pro-hamaals, etc budget.
ASN (MON JUL 22 20:57:57 1996 IST):
What were the options before the finance minister and how
best did he utilise them? Do you think Mr Chidambaram can go to
bed tonight, satisfied he has done a good job?
RAGHU PALAT (MON JUL 22 20:58:07 1996 IST):
Lyn: Okay, let's get serious here. What solutions would you
suggest, considering we have a very strange coalition government
that is, in your own words, neither communist fish nor capitalist
fowl?
LYN (MON JUL 22 20:58:26 1996 IST):
:-o:-o:-o:-o:-o:-o:-o:-o:-o:-o:-o:-o:-o
YAZAD (MON JUL 22 20:58:37 1996 IST):
india, my dear lyn, is not headed for catastrophe, for the
simple reason that if the poor indian cannot get off his backside
and contribute, he will not do it to revolt either. remember how much
coaxing the poor indian needed just to become free from
colonists!
MARYANN-BOSTON (MON JUL 22 20:58:54 1996 IST):
Can anyone tell me how all this will affect my retired 75-year
old mother in Bangalore?
MR.PASHUPATI ADVANI (MON JUL 22 20:59:32 1996 IST):
Lyn: We heartily agree with your point of view -- this budget
has very little for education - but it is more than last year
at least. I also like his "gift" of Rs 5 crores ( $1.25 Million
) for residential schools for the poor. His other "gifts"
like homes for hamals and old people are drops in the ocean and should have not even
been mentioned in the budget speech. All these sops are just
vote catching devices, demagoguery etc. I would have expected
more from a Harvard MBA ( Chidambaram )
YAZAD (MON JUL 22 20:59:59 1996 IST):
i repeat, the budget was nothing but a trial balloon in advance
of the real thing next year, if, as LANM says, there is a next
year for chidambaram.
RAGHU PALAT (MON JUL 22 21:00:11 1996 IST):
ASN: Chidambaram will go to bed anyways. As to whether he
will do so with a sense of satisfaction, I suspect he will be
happy that he did the best under the circumstances. He is like
a juggler with half a dozen eggs afloat, trying to keep them all
intact. I just hope none fall on his face.
TAKAHIKE (MON JUL 22 21:01:24 1996 IST):
hi room
RAGHU PALAT (MON JUL 22 21:01:39 1996 IST):
Maryann: With the real rate of inflation at around 13 per
cent, I believe she will be worse off even though senior citizens
have
been given a slight tax break.
MARYANN-BOSTON (MON JUL 22 21:01:43 1996 IST):
Is there any better reason now for non residents to invest
in India?
MR.PASHUPATI ADVANI (MON JUL 22 21:02:15 1996 IST):
TAKAHIKE Take a Hike to our room
RAGHU PALAT (MON JUL 22 21:02:15 1996 IST):
TAKAHIKE: Is your handle a statement of intention? Or a request
to the rest of us?:-)
SHAILU (MON JUL 22 21:02:49 1996 IST):
hey but after these cuts in custom duties,isn't the inflation
rate going to shoot up? what do you all think PM will do to bring
down the inflation rate?
RAGHU PALAT (MON JUL 22 21:02:58 1996 IST):
Maryann: No NEW reason in this budget. All one can do is appeal
to your sense of patriotism.
RAGHU PALAT (MON JUL 22 21:03:25 1996 IST):
Shailu: Pray!
VIG (MON JUL 22 21:03:30 1996 IST):
Hi ya all. Who does this budget favour ? Rich man, Poor man,
Middle Class jockeys or sleezy politicians?
BURANDT:SINGAPORE (MON JUL 22 21:03:39 1996 IST):
We have a joint venture trading company in India-what does
this budget offer?
RAGHU PALAT (MON JUL 22 21:04:29 1996 IST):
Burandt: Nothing new. It could depend on what the activity
of your firm is in regard to duties, etc.
MR.PASHUPATI ADVANI (MON JUL 22 21:04:55 1996 IST):
TAKAHIKE Take a Hike to our room
RAGHU PALAT (MON JUL 22 21:05:33 1996 IST):
vig: Poor men, and politicians. Not necessarily in that order.
So what else is new?
ASN (MON JUL 22 21:06:40 1996 IST):
Where does the UF govt go from here? I know you guys are not
politicians, but still. If it lasts, what can this govt do?
LYN (MON JUL 22 21:07:27 1996 IST):
What about the deficit? Do you think he has done enough to
cut the deficit?
RAGHU PALAT (MON JUL 22 21:07:55 1996 IST):
ASN: Not being Nostradamus, I wouldn't want to be definite
on this. But I cannot see the FM presenting another budget in
this government..
VIG (MON JUL 22 21:08:20 1996 IST):
RP: Is that mean Middle Class jackasses now have to become
POOR, to take advantage of the budget ? It looks like if one
wants to become politician, how long a wait for the next election
?
ASN (MON JUL 22 21:08:20 1996 IST):
Yeah, what about the deficit? Is that albatross off the govt's
neck?
RAGHU PALAT (MON JUL 22 21:08:36 1996 IST):
Lyn: Not really. I don't think the FM will be able to contain
it within 5 per cent as he hopes to.
RAGHU PALAT (MON JUL 22 21:09:46 1996 IST):
vig: Yes, there is nothing for the middle class. It is only
the poor, the rich farmers and the politicians who are looked
after. Butthat's always been the case.
YAZAD (MON JUL 22 21:09:47 1996 IST):
maryann, there's no new reason for NRIs to invest in india.
but the old reasons are still more than valid. is there any other
place
in teh world that can give you the kind of returns available here
today?
LYN (MON JUL 22 21:10:04 1996 IST):
I am no economist, but you guys must have some ideas on what
India needs to do, to ensure sustained growth.
SHAILU (MON JUL 22 21:10:25 1996 IST):
hey friends, but there has been no encouraging increse in
the budget layout for defence? don't you think we should upgrade
you security, as there has been frequent security violation in
recent time?
LYN (MON JUL 22 21:10:58 1996 IST):
Mr Palat, are you there?
RAGHU PALAT (MON JUL 22 21:11:10 1996 IST):
Lyn: We do. But we don't make policy. The politicians do that.
And they haven't got a clue. They are only interested in how to
hold on to their chairs.
VIG (MON JUL 22 21:11:41 1996 IST):
Looks like INDIA will reap bug bucks from Intellectual Property
vending companies in the next 5 to 20 years. What does this
budget do for them ?
ASN (MON JUL 22 21:11:47 1996 IST):
Mr Advani, if I had Rs 100,000 to invest, please let me have
the names of five cos to invest
RAGHU PALAT (MON JUL 22 21:12:08 1996 IST):
Shailu: I think enough has been allocated for defence, and
the FM has also said that if more is needed, he will allocate.
MR.PASHUPATI ADVANI (MON JUL 22 21:12:16 1996 IST):
Raghu Palat: I agree with you, I do not see PC making a 5
pm speech again. Vig: I see a general election in 1997 ASN: I
don't
see where the revenues are going to come from as all the FM has
done is give away bits and pieces
BURANDT:SINGAPORE (MON JUL 22 21:12:30 1996 IST):
Is it possible that Chidambram is all talk-when given a chance
he has just got overwhelmed by his bureucrats?
YAZAD (MON JUL 22 21:12:51 1996 IST):
mr advani, if, as you say the stock market has reacted favourably,
does that include fresh/heavy FII buying?
VIG (MON JUL 22 21:13:18 1996 IST):
:-o
RAGHU PALAT (MON JUL 22 21:14:10 1996 IST):
vig: Nothing special.
RAGHU PALAT (MON JUL 22 21:14:52 1996 IST):
Burandt: I think he really didn't have a choice. He had to
have a budget that satisfied all his colleagues.
MR.PASHUPATI ADVANI (MON JUL 22 21:15:57 1996 IST):
ASN: L & T, Tata Power, Oriental Bank, BSES, ABB You might
consider an open end mutual fund also for this amount of
money. Currently, they offer very little loads.
LYN (MON JUL 22 21:16:20 1996 IST):
Let us have some lively stuff, gentlemen. I thought you guys
would provide some insights on how the Indian economy can be
sustained.
BURANDT:SINGAPORE (MON JUL 22 21:16:23 1996 IST):
Lack of imagination, vision I think!
RAGHU PALAT (MON JUL 22 21:17:34 1996 IST):
Burandt: what else can you expect from these clowns?
ASN (MON JUL 22 21:17:56 1996 IST):
Saurav, are you there?
KRISH (MON JUL 22 21:18:09 1996 IST):
Any stockbrokers here-what do they feel?
ZEE (MON JUL 22 21:19:17 1996 IST):
seems like a pretty wishy-washy budget to me....a tad overblown
with hyperbole and a bit lacking in specifics
LYN (MON JUL 22 21:19:27 1996 IST):
Krish, there is one big shot stockbroker. Pashu Pati Advani.
His resume is impressive man, but let us have some insight, Mr
A.
KRISH (MON JUL 22 21:19:34 1996 IST):
Who are the 'experts' here - wedont seem to be getting any
answers!
VIG (MON JUL 22 21:19:47 1996 IST):
Any idea as to how many % of revenue is to be spent on Defense,
Education and Internal Security ?
RPK (MON JUL 22 21:19:56 1996 IST):
Mr Palat, with this budget, where do you see India standing,
economically, a year from now?
RAGHU PALAT (MON JUL 22 21:19:57 1996 IST):
Zee: You're very perceptive. I couldn't have put it better.
MR.PASHUPATI ADVANI (MON JUL 22 21:20:18 1996 IST):
Krish: I love it
RAVI MANIAN (MON JUL 22 21:20:38 1996 IST):
More petrol prices???
YAZAD (MON JUL 22 21:20:40 1996 IST):
mr advani, was there FII buying today when, as you say the
market reacted positively?
ASN (MON JUL 22 21:20:45 1996 IST):
Krish, let us decide what questions what we answered, and
let us ask these guys.
RPK (MON JUL 22 21:21:12 1996 IST):
Do any of the experts here have any idea what signals the
foreign investor will get from this budget?
RAGHU PALAT (MON JUL 22 21:21:18 1996 IST):
RPK: I see economic growth slowing down. The capital market
will also probably continue its slide. The middle class and the
fixed income group will have a really hard time.
ZEE (MON JUL 22 21:22:03 1996 IST):
no, but seriously, Raghu....did you find anything in there
that specifically addresses in a meaningful and *contributory*
manner
to any of the "problems" facing the economy today ??
ASN (MON JUL 22 21:22:05 1996 IST):
Saurav, are you there?
RAGHU PALAT (MON JUL 22 21:22:32 1996 IST):
RPK: The foreign investors will not be particularly excited.
I think he will look elsewhere also.
RPK (MON JUL 22 21:23:08 1996 IST):
Mr Palat...meaning that when it comes to presenting the next
budget, things are going to get all the more complicated for our
FM? By the way, let's play let's pretend: pretending that Manmohan
Singh was FM today, what sort of budget do you think he
would have come up with?
ASN (MON JUL 22 21:23:14 1996 IST):
Krish?
HKINDIAN (MON JUL 22 21:23:14 1996 IST):
u guys seem to have an insiders club,who is Pasu pat, who
is Palat?
VIG (MON JUL 22 21:23:28 1996 IST):
RP: You sound very negative. Why ? Are there any specifics
you can share with us for your blues ?
YAZAD (MON JUL 22 21:23:35 1996 IST):
krish:what's your question?
ASN (MON JUL 22 21:24:47 1996 IST):
HK INdian: Pasupati as in Pasupati Advani. Palat as in Raghu
Palat.
RAGHU PALAT (MON JUL 22 21:25:26 1996 IST):
Zee: The budget does attempt to help the poor and recognizes
the fact that the infrastructure is lacking and needs to be
developed. But the reforms are not adequate, and I think there
will be a long gestation.
YAZAD (MON JUL 22 21:25:38 1996 IST):
HKINDIAN: Palat is Mr Raghu Palat, you missed his intro. Pashupati
is Pashupati Advani. Cheers.
LYN (MON JUL 22 21:26:39 1996 IST):
Gentlemen, does this budget augur a better future for us?
Did Mr Chidambaram have an alternative?
YAZAD (MON JUL 22 21:26:44 1996 IST):
hey, someone said no experts? Heeeere's Mr Nipun Mehta. He's
a trader on the OTC Exchange of India and preeeetty well
informed about the economy in general and the stock markets in
particular. over to you guys.
MR.PASHUPATI ADVANI (MON JUL 22 21:27:05 1996 IST):
Lyn: I admire your views so On a serious note - This budget
has brought no surprises. The reform process is continuing on
some kind of schedule, which will be comforting to foreign investment.
Some touchy topics like the opening up of the insurance
sector have been gently shoved away. Overall, people were expecting
taxes on consumer goods and automobiles, but in fact
some excise was reduced. The net effect is that India is approaching
its global status quickly. What this means for the markets
is steadiness. Another thing mentioned ( actually passed last
week ) is the advent of the depositary. This will improve liquidity
in the stock market also.
RPK (MON JUL 22 21:27:05 1996 IST):
There seems to be some enthusiasm over the fact that the FM
has taken some real steps to set up a special bank for funding
infrastructural development projects. Is this misplaced enthusiasm,
Mr Palat, or do we really have cause to cheer?
ASN (MON JUL 22 21:27:22 1996 IST):
Krish, I am waiting for you. In my native Lucknow, it is pehle
aap.
VIG (MON JUL 22 21:27:24 1996 IST):
RP:Are there any comments about this budget from Mr.MM.Singh
? Also, what kind of editorials if any from INDIAN rags?
RAGHU PALAT (MON JUL 22 21:28:00 1996 IST):
RPK: I think that if Manmohan Singh was the FM, then the Rupee
might have become convertible, the dividend income would
have been declared tax free and tax slabs would have been rationalized,
including abolishing the surcharge on corporate tax.
These are just a few of the things you have done.
ZEE (MON JUL 22 21:28:43 1996 IST):
Raghu : "helpi
RAGHU PALAT (MON JUL 22 21:29:27 1996 IST):
Vig: You'll have to wait for tomorrow. Incidentally, Indian
newspapers are very good, not rags.
LYN (MON JUL 22 21:30:30 1996 IST):
Gentlemen, do you you envisage Mr C being ties into knots
by the Marxists who have a better understanding of India?
RPK (MON JUL 22 21:30:59 1996 IST):
Mr Palat: Speaking strictly as a layman, it always strikes
one as funny that we never have enough money for our own needs,
but enough for lending to other countries. Rs 480 crore, I think,
is the figure set aside this time. What is the logic behind this?
Can't that money be better employed right here?
RAGHU PALAT (MON JUL 22 21:31:09 1996 IST):
RPK: Nothing to really cheer about.
RAGHU PALAT (MON JUL 22 21:32:06 1996 IST):
RPK: I suppose we lend to give ourselves some superiority.
ASN (MON JUL 22 21:32:29 1996 IST):
Krish. I am tired of waiting for you. Would you rate this
the most disappointg Budget in recent times?
VIG (MON JUL 22 21:32:43 1996 IST):
Adios Amigos ...from the Grand Canyon State, Arizona.. Cheers.
Have fun today..Tomorrow will be better..
RPK (MON JUL 22 21:33:10 1996 IST):
To our experts: Besides the fact that both used Urdu couplets
to a considerable extent while presenting it, what commonalities
are there between the financial programmes of Manmohan Singh and
Chidambaram?
YAZAD (MON JUL 22 21:33:10 1996 IST):
nipun, how has the market reacted?
RAGHU PALAT (MON JUL 22 21:33:30 1996 IST):
Lyn: He already has been. If they do any more, he won't be
able to move at all.
RPK (MON JUL 22 21:33:51 1996 IST):
Mr Palat: and then borrow to reinforce our inferiority?
LYN (MON JUL 22 21:34:01 1996 IST):
Vig. The future can only be bright for India. When are you
coming home pal?
RAGHU PALAT (MON JUL 22 21:34:31 1996 IST):
RPK: You really can't compare because the circumstances are
totally different.
ASN (MON JUL 22 21:34:49 1996 IST):
Who is this nupun?
NSM (MON JUL 22 21:35:15 1996 IST):
yazad : The market has not really taken the budget very enthusiastically.
It appeared to be expecting far more. The BSE
Sensitive index fell inthe initial stages but recovered in the
end.
RPK (MON JUL 22 21:36:03 1996 IST):
Are they, really, Mr Palat? If memory serves, in Mr Singh's
time the government was in a minority initially, and he too had
constituents he needed to satisfy. And yet...
VIG (MON JUL 22 21:36:03 1996 IST):
Lyn: Before I really leave, My home is Arizona. I am a Yank.
I do have lots of interests boths human and fianacial in
INDIA..Have a great day..
RAGHU PALAT (MON JUL 22 21:36:32 1996 IST):
RPK: I agree and our debt at $99 billion is really worrying.
As you know, it grew from $94.8 billion last year, and it'll probably
cross the $100 billion mark soon.
YAZAD (MON JUL 22 21:36:36 1996 IST):
ASN. NIPUN, not nupun, is logged in as NSM. he is a trader
on the Over The Counter Exchange of India.
NSM (MON JUL 22 21:36:54 1996 IST):
ASN : This is Nipun Mehta. I am a Dealer on the OTC Echange
of India in Bombay. It is an exchange similar to the Nasdaq in
the USA.
LYN (MON JUL 22 21:37:14 1996 IST):
I love you Vig. May the great Indian diaspora help our mother
nation. Like the Chinks do. Have a great day!
RAGHU PALAT (MON JUL 22 21:37:32 1996 IST):
RPK: But not a group as diverse as this, and with such political
motives.
RAVI MANIAN (MON JUL 22 21:38:09 1996 IST):
Why not leave the public sector alone. Rs.1 cr. to each cabinet
minister. What's going on?
Yazad (Mon Jul 22 21:38:26 1996 IST):
nipun, say the FM were to abolish the double taxation on dividend,
would the market have reacted more favourably? why do
you think he didn't?
RPK (MON JUL 22 21:38:34 1996 IST):
Mr Palat, and others: Is the lesson being learnt here, gentlemen,
this, that coalition governments are no good for this country?
P CHIDAMBARAM (MON JUL 22 21:38:49 1996 IST):
How did you guys like my budget?
ASN (MON JUL 22 21:39:13 1996 IST):
Tell me guys, is it true that pasports don't have to be renewed
anymore?
RPK (MON JUL 22 21:40:18 1996 IST):
ASN: No, if you aren't planning to go anywheres... :-)
RAGHU PALAT (MON JUL 22 21:40:34 1996 IST):
RPK: We know that coalitions don't work. But in cases such
as this it is power for power's sake and the consequences bedamned.
YAZAD (MON JUL 22 21:40:43 1996 IST):
Ravi, i don't know if you watched the budget on telly, but
the only time the House came alive was when chidambaram
announced the continuation of the MPs' fund. these guys get into
parliament for one reason and one reason only -- to see how
far they can line their own pockets. besides, if chidambaram had
not given them this sop, they would not have voted for the
budget to pass it!!
NIPUN MEHTA (MON JUL 22 21:41:45 1996 IST):
Yazad : The market would really have reacted very favourably
had the double taxation on dividend been abolished. There is
no particular reason for it not having been abolished.. It's just
that no FM has the courage to take such a bold step since
several years.
ASN (MON JUL 22 21:41:46 1996 IST):
PC man, glad to make your acquaintance. I dig your dhoti and
your accent, man.
SHAILU (MON JUL 22 21:41:59 1996 IST):
why blame the coalition government. would any other government,
say the BJP, actually have given a budget much different?
RAGHU PALAT (MON JUL 22 21:42:10 1996 IST):
Thanks guys: I enjoyed talking to you. I had a great time.
RPK (MON JUL 22 21:43:13 1996 IST):
Mr Palat, is that sayonara we hear?
YAZAD (MON JUL 22 21:43:44 1996 IST):
mr palat, you can't be going to bed so early!! anyway, thanks
a mill for the insights, really enjoyed having you with us.
RPK (MON JUL 22 21:43:57 1996 IST):
Mr Advani, ever considered an online investment tutorial,
say once a week?
MR.PASHUPATI ADVANI (MON JUL 22 21:44:21 1996 IST):
Thanks a lot everyone I am leaving you all in the hands of
a very capable broker NIPUN MEHTA GOODNIGHT
YAZAD (MON JUL 22 21:45:01 1996 IST):
ASN: That's no dhoti, that's a munde. but, PC, what i like
best about you is your hair - so slick and oiled.
YAZAD (MON JUL 22 21:46:06 1996 IST):
nipun, why not? what would removing double taxation mean in
terms of the economy?
MANMOHAN SINGH (MON JUL 22 21:46:08 1996 IST):
PC: sorry to be rude, but that thing you read out today sends
off a smell... :)
YAZAD (MON JUL 22 21:46:29 1996 IST):
and anyway, nipun, what is your overall view of the budget?
RAVI MANIAN (MON JUL 22 21:49:01 1996 IST):
Why not have software do the budget? Balanced budget - no
problem. Key in priorities with weights, positive & negative
Does the Finance Dept. need more work? No! ah.
NIPUN MEHTA (MON JUL 22 21:50:55 1996 IST):
Yazad : Removing double taxation on dividend would really
mean a losing proposition to the Government in terms of loss of
tax revenue. Though the revenue loss would not be very high, it
is just that no FM has surprisingly really considered it much
of
a priority.
SURYAP (MON JUL 22 21:51:21 1996 IST):
hello everyone - anyone from India Today here ?
YAZAD (MON JUL 22 21:51:22 1996 IST):
ravi, hey, you're talking blasphemy! where would all our bureaucrats
go? Remember, india also has an unemployment
problem!
YAZAD (MON JUL 22 21:52:26 1996 IST):
suryap, there was somebody from India Today here earlier,
but not anymore, it seems. why?
NIPUN MEHTA (MON JUL 22 21:53:12 1996 IST):
Yazad : My overall view of the Budgert is that it is just
about an average effort which continues the effort put in Dr.
MM singh.
Mr. PC could have shown a little more confidence in making the
proposals.
LYN (MON JUL 22 21:53:17 1996 IST):
Thanks a lot, folks! Good night.
YAZAD (MON JUL 22 21:54:21 1996 IST):
see ya lyn. give all the poor indians our very best.
ASN (MON JUL 22 21:54:40 1996 IST):
Mr Mehta, I have Rs 100,000. Give me ten shares that I can
invest in and make Rs 200,000 next year this time.
SURYAP (MON JUL 22 21:55:41 1996 IST):
thanks, yazad. one more question - any journalists from Delhi,
India ??
ASN (MON JUL 22 21:57:52 1996 IST):
Come on, Mr Mehta.
A N SHANBHAG (MON JUL 22 21:59:04 1996 IST):
hi people, i'm a n shanbhag, For an individual tax payer,
if you have any questions I will try to answer.
ASN (MON JUL 22 22:00:11 1996 IST):
Listen guys, if I wait this long, I won't be able to make
any dought. Or are you guys scared to go out on our limb like
Pashu?
YAZAD (MON JUL 22 22:00:32 1996 IST):
suryap, none that have identified themselves as such. who
might you be, by the way?
ASN (MON JUL 22 22:00:32 1996 IST):
The A N Shanbhag?
YAZAD (MON JUL 22 22:01:01 1996 IST):
mr shanbhag, for an NRI, has there been anything in this budget
worth cheering about?
NIPUN MEHTA (MON JUL 22 22:01:15 1996 IST):
ASN : Doubling your money on the Indian Stock markets in just
about a year is not going to be very easy. Anyway invest in
infrastructure and turnkey project companies.
YAZAD (MON JUL 22 22:01:42 1996 IST):
yes, ASN, THE a n shanbhag
RAVI MANIAN (MON JUL 22 22:02:08 1996 IST):
Mehta: What is in for the stock market this week?
A N SHANBHAG (MON JUL 22 22:02:59 1996 IST):
Mr. Yazad sorry none whatsoever.
DALAL STREET (MON JUL 22 22:03:11 1996 IST):
Everyone: Why should I pay taxes to a corrupt governemnt ?
I cannot sleep at night cause the thought has been giving me
sleepless nights
DALAL STREET (MON JUL 22 22:03:12 1996 IST):
Everyone: Why should I pay taxes to a corrupt governemnt ?
I cannot sleep at night cause the thought has been giving me
sleepless nights
NIPUN MEHTA (MON JUL 22 22:03:49 1996 IST):
Ravi Manian : From the initial reaction, the market does not
seem to have taken the budget very excitedly. It still seems to
be in
for some uncertain times.
YAZAD (MON JUL 22 22:04:32 1996 IST):
mr shanbhag, that's unfortunate. how will the little sop of
reducing the bottom rate of tax going to affect taxpayers in that
slab?
And what will it raise for the exchequer?
AKD (MON JUL 22 22:05:42 1996 IST):
Hello. Mr Shanbhag, you don't like shares. Are there any schemes
in this Budget to help me save taxes? Please do help.
ASN (MON JUL 22 22:06:08 1996 IST):
Which comanies, Mr Mehta? L&T?
AKD (MON JUL 22 22:07:17 1996 IST):
Mr Shanbhag, your views of the Budget? Is it as bad as everyone
as made it out to be?
A N SHANBHAG (MON JUL 22 22:07:26 1996 IST):
Dalal Street: There are enough cures for your insomnia in
the Income Tax Act. And please note, that voters get the government
they deserve. You will do well to have a good look at the various
exemptions and rebates available to individuals. Whereas
this particular budget has ensured that there will be no nil tax
companies anymore, it is possible for an individual to arrange
his
affairs in a fashion where he can be in the nil tax zone and yet
not sacrifice much of returns on his investments
ASN (MON JUL 22 22:08:14 1996 IST):
Mr Shanbhag, you are awesome. What is there in it for the
Nri?
NIPUN MEHTA (MON JUL 22 22:09:06 1996 IST):
ASN : L & T is good.
A N SHANBHAG (MON JUL 22 22:09:28 1996 IST):
AKD: Actually, I would hate to call it a budget. In my opinion,
it is a second on account exercise. The FM in his budget
speech did say that the real dose will come in the next budget
due in February 1997.
AKD (MON JUL 22 22:09:35 1996 IST):
Which are the other companies? Mr Mehta
SAMIT (MON JUL 22 22:10:01 1996 IST):
hi all, i'm samit, a technical analyst from Mumbai, the greatest
city in the world. and i've been watching the post-budget trading.
and let me tell you, the outlook is very positive indeeeeeed.
ASN (MON JUL 22 22:10:39 1996 IST):
Someone asked earlier: Is this the worst Budget we have had
in the last five years?
AKD (MON JUL 22 22:11:18 1996 IST):
Samit, you are in a majority of one. Everyone else thinks
the Budget is crap.
A N SHANBHAG (MON JUL 22 22:12:35 1996 IST):
ASN: In a little while, I expect excellent sops offered to
all the NRIs and OCBs and FIIs in respect of their investments
in
infrastructural activities. This budget has reduced a little here
and a little there, but hasn't really provided for increase in
the
revenue. The FM appears to be depending upon the investments from
abroad and from private sectors in India.
SAMIT (MON JUL 22 22:13:00 1996 IST):
mr mehta, this is my view, however humble. please respond.
i feel the market has absorbed the zero-tax companies being
taxed, by a minor fall during trading hours. and the market has
displayed strength by closing towards the day's high. the
long-term trend of the market continues to be bullish, the intermediate
trend could as well turn upwards after the fortnight's
consolidation. in between 3615 and 3745 points.
NIPUN MEHTA (MON JUL 22 22:13:18 1996 IST):
ASN : Companies in the power sector are good. Tata Power,
BSES should be good bets.
MR.PASHUPATI ADVANI (MON JUL 22 22:13:20 1996 IST):
Thanks a lot everyone I am leaving you all in the hands of
a very capable broker NIPUN MEHTA GOODNIGHT
RAVI MANIAN (MON JUL 22 22:13:23 1996 IST):
Mehta: Wipro has 10 times more sales than Infosys. But, both
stocks are bidding at the same price currently. How do you
explain this?
SAMIT (MON JUL 22 22:14:32 1996 IST):
ASN: it's not me that thinks the outlook is good, i'm talking
about the market, from the technical reading supported by its
parameters.
SAMIT (MON JUL 22 22:15:16 1996 IST):
sorry ASN, my last message was for AKD.
NIPUN MEHTA (MON JUL 22 22:15:22 1996 IST):
Samit : I would partially tend to agree with you, the long
term outlook will remain bullish, however, since the opening out
of the
economy the stock market movements are dependent on several factors,
worldwide.
SAMIT (MON JUL 22 22:16:07 1996 IST):
mr shanbhag, has there been any change at all in the 40 per
cent tax zone? is there any new change that i can take advantage
of
to reduce my liability?
NIPUN MEHTA (MON JUL 22 22:18:22 1996 IST):
Ravi Manian : Both Wipro and Infosys belong to two different
industries which attract different price discounting. The price
is
also dependent in the floating stock in each company. Incidentally,
Infosys is in an industry where growth rates in the past
several years have been high and which attracts a very high Price
to earnings ratio.
A N SHANBHAG (MON JUL 22 22:19:42 1996 IST):
Samit: The only advantage that you would get is a reduction
in your total tax liability by Rs 1,000 thanks to the reduction
in the
first slab rate from 20 per cent to 15 per cent. There are also
some new schemes that give you additional tax rebates and
exemptions up to rupees ten thousand.
RAVI MANIAN (MON JUL 22 22:19:58 1996 IST):
Shanbaag: How about a flat-rate tax system for India. This
was wooed by presidential candidates in the U.S. Will it work
in a
disparate (rich & poor) economy as in India?
SAMIT (MON JUL 22 22:20:00 1996 IST):
mr mehta: technical analysis takes into account the price
movements based on the demand-supply position. it considers many
factors apparent as well as non-apparent. so even worldwide factors
would already be discounted.
A N SHANBHAG (MON JUL 22 22:21:02 1996 IST):
samit, are you an nri or a resident Indian?
SAMIT (MON JUL 22 22:21:04 1996 IST):
mr shanbhag: what are these schemes?
SAMIT (MON JUL 22 22:21:38 1996 IST):
mr shanbhag: i am indian, to the core.
P CHIDAMBARAM (MON JUL 22 22:23:04 1996 IST):
How did you guys like my budget?
NIPUN MEHTA (MON JUL 22 22:23:13 1996 IST):
Samit : I agree, unfortunately I'm not a great fan of technical
analysis, though I agree that in a good percentage of cases it
works.
ASN(MON JUL 22 22:24:00 1996 IST)
Phew. See you guys.
SAMIT(MON JUL 22 22:24:01 1996 IST)
hey chidu, glad to hear from you. tell me, who twisted your
arm to present this budget??
SAMIT(MON JUL 22 22:24:56 1996 IST)
mr shanbhag, you haven't answered my question.
NIPUN MEHTA (MON JUL 22 22:25:37 1996 IST):
asn : Hey wait, you can't log off so fast. Shoot off some
more questions.
A N SHANBHAG (MON JUL 22 22:26:02 1996 IST):
samit : there is a pension fund enviasged to be launched by
LIC which will give you a deduction up to Rs. 10,000 . moreover
under section 88 the rebate for housing loan repayment ceiling
has been raised to Rs.15,000 from Rs.10,000. there is one
more addtition to the section 88 . any contibution to infrastructure
comopnies will earn a tax rebate of 20% on an maximum
amount of Rs.10,000 in addtion to the present limit of 60,000.
SAMIT (MON JUL 22 22:26:41 1996 IST):
mr shanbhag is mr wagh with you? if he is, please tell him
i really enjoy The Benchmark on Rediff. i think it is the only
one that
takes into account the future value of rights and bonuses when
calculating the returns. how do you factor in future values?
NIPUN MEHTA (MON JUL 22 22:29:59 1996 IST):
Where are all of you guys, nobody interested in the Indian
stock markets ?
AKD (MON JUL 22 22:30:27 1996 IST):
Heard this one lately? Einstein up in heaven, met three souls.
"What's your IQ?" he asked the first. 200. good, we
can discuss
the theory of relativity, said einstein. then to the second, "What's
your IQ?" `150.' "Good, we can discuss world peace."
And
to the third, "what's your IQ?" He replied: `50.' Einstein
paused, and then asked: "Do you think I should sell my shares
or buy
new ones now?"
A N SHANBHAG (MON JUL 22 22:30:29 1996 IST):
samit: thank you very much! the mathametical algorithm to
compute the equivalent rate of returns is quite complicated and
most
of the analyst arrived at this figure by making some simplistic
assumptions. the only reason why we are producing the
benchmark is because this is the only most accurate one available.
RAVI MANIAN (MON JUL 22 22:31:07 1996 IST):
Chidambaram: How about a boxing bout with MM in Las Vegas?
SAMIT (MON JUL 22 22:31:58 1996 IST):
mr mehta, what can one say about a budget that presents more
sops to the MPs than to the man on the street? Such a bland
and tepid budget i have yet to see in india.
SHAILU (MON JUL 22 22:32:02 1996 IST):
Ha! Ha! Ha! Good one AKD. Too bad the hot shot broker who
was here has left.
NIPUN MEHTA (MON JUL 22 22:34:00 1996 IST):
Samit : What would you liked to have in the Budget?
NIPUN MEHTA (MON JUL 22 22:35:42 1996 IST):
Shailu : If you're talking about me, I's still very much alive
and kicking.
ZEOLITE (MON JUL 22 22:36:23 1996 IST):
According to Einstein when you jump up the earth comes up
and gets you, not gravity
NIPUN MEHTA (MON JUL 22 22:36:46 1996 IST):
AKD : Whatever Einstein might say, I still believe if you
had the choice of doubling your money or to discuss the theory
of
relativity, you would choose the former. Wouldn't you ?
SAMIT (MON JUL 22 22:40:52 1996 IST):
mr mehta, ZERO TAX. or a token tax of 1 per cent!!
SAMIT (MON JUL 22 22:41:35 1996 IST):
okay chaps, thanks for the buzz. great learning from you.
see ya sometime at the BSE??
A N SHANBHAG (MON JUL 22 22:41:40 1996 IST):
good bye.... folks nice talking you
NIPUN MEHTA (MON JUL 22 22:42:36 1996 IST):
Good night guys... see you at the next budget.
|