gfiles magazine

December 9, 2014

Stay with the run

STOCK DOCTOR
dr gs sood

The market has gained about 40 per cent in a year and is trading at an all-time high with mid-caps and small caps gaining around 65 per cent and 90 per cent, respectively, mainly driven by change in the sentiment led by the formation of a government with a strong majority and a Prime Minister who is the most pro-growth pro-investment leader in the world with the credentials, will and capability to deliver. But, this also makes Modi the biggest risk for the market — if something happens to him or if he fails to deliver. Besides a stable government that holds the promise of reforms, the market is rising due to change in the environment led by small steps such as scrapping of the Planning Commission, removal of diesel subsidy, launch of Jan Dhan and Swachh Bharat programmes, faster decisions and making the bureaucracy work, to name just a few. 


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