Some food for thought
"To be, or not to be, that is the question."
—William Shakespeare (English writer 1564-1616)
Word for the day
Donnish (adj)
Bookish; pedantic.
First thought this morning
Indian National Congress (INC), the grand old party of Indian
politics, is presented with multiple opportunities post general election
debacle. For example—
(i) It has opportunity
to reorganize itself as a truly democratic party that represents the ethos of
Indian society and culture, the way it was originally constituted. They can
elect a leader purely based on merits. Since the party is already on the floor,
it does not have much to lose from here.
(ii) NDA 2 government
has disappointed middle classes and farmers alike with its maiden budget. INC
can constructively build on this disappointment to create a favorable sentiment
in its favor in the forthcoming assembly election in states like Maharashtra,
Bihar, Haryana, Jharkhand etc. Due to marginalization of regional opposition to
NDA (RJD in Bihar, NCP in Maharashtra, INLD in Haryana and JMM in Jharkhand)
INC has opportunity to become a serious challenger to the ruling NDA in all
these states.
(iii) Both SP and BSP
lay in total disarray in UP. BSP leadership trouble with enforcement agencies
are also on the rise. The uninspiring SP leadership is bogged down by family
disputes and erosion in support base. INC has the opportunity to capture the
primary challenger space and build its organizational strength for 2022
assembly elections.
Rahul Gandhi vacating the party office, Sonia Gandhi not keeping
well and Priyanka Gandhi having failed the entrance test, could be a blessing
in disguise for INC. The opportunity is knocking hard at INC door. The question
however is, who will open the door!
Chart of the day
Look for opportunities, whining can wait
Most of the market participants appear disappointed by the maiden
budget of the NDA-2 government. Reactions on social media are rather
uncharitable. For example consider the following few representative examples:
Besides the point, the budget might have opened a window of
opportunity somewhere. The following is an illustrative list of companies
having less than Rs450cr revenue, and a strong 15% + ROCE for FY18. There may
be numerous such companies which will enjoy the benefit of lower tax rate of
25% fro FY20 onwards.
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