Articles by Nishtar

Delayed Reaction Nishtar THE stock market has set its sights lower. The mood of cautious optimism discernible on the eve of the general budget has given way to a feeling of disappointment, Pre-budget optimism was attributable partly to the not-so- harsh hike in railway freight rates and passenger fares and partly to the optimistic tone of the Economic Survey certifying that the economy which had given a "generally satisfactory" performance in 1970-71 was better poised to tackle the formidable problems con- fronting it. Even though its expectations of a saving and investment oriented budget had been belied, the market presented a fairly steady front during the special budget session on Friday evening. It seemed to take comfort in the thought that the Finance Minister could have easily assumed a more radical posture in evolving his fiscal strategy.

Avoiding the Net?
Nishtar THE stock market seems to have developed symptoms of mild 'budgetitis.' The mood of cautious optimism has given way to a feeling of uneasiness. After inching its way very close to its January high mark, the market hesitated for a while and later retreated under pressure of precautionary bull liquidation and modest bear selling, induced mainly by tax fears. Most counters have closed around the lowest levels of the week. But losses, though widespread, have generally been confined within a narrow range.

Rap from Government Nishtar THE stock market has been marking time recently, moving up and down in a leisurely manner. By April 17, the market had moved so very close to the year's highest level recorded in January that it was almost inevitable that it should pause to allow technical forces have their play before taking its next important step. However, despite considerable corrective profit-taking, the market has staged only a modest retreat. Selling has been easily absorbed due to a number of bull factors. The corporate news in particular has been very favourable. Quite a large number of companies which have released their results recently have gladdened the hearts of their shareholders through larger profits, higher dividends and bonus issues. Thanks to the return flow of funds and spurt in deposits, conditions in the short-term money market have improved perceptibly. The interbank call rate has come down to 6 per cent and banks have effected a substantial reduction in their borrowings from the Reserve Bank. This has naturally raised expectations of a liberalised credit policy. Reports from New Delhi indicate that the Government is inclined to implement the licensing policy in a flexible manner with a view to stimulating industrial growth. Recent export trends have also been encouraging.

Indecisive Mood Nishtar THE stock market's performance last week was not much different from that in the preceding week. Despite the somewhat improved tone at the weekend, the market continued to present an uneasy look. There was no dearth of news, good as well as bad. But the market was in no responsive mood. Bullish news produced little buying and bearish news caused no big selling. With tragic events in East Pakistan weighing heavily on their minds, operators continued to remain on the sidelines. Equity prices moved up and down

Suspense to Continue Nishtar THE stock market has been unable to improve upon its previous week's high and, instead, it has staged a precautionary retreat. Bullish fervour generated by the prospect of a stable and firm government at the Centre has cooled down. The market has done well in not allowing wishful thinking to colour its judgment. While it is reasonable to expect that the new government will be able to deal more effectively with the disturbing law and order situation and that this will have a favourable impact on the investment climate, the market has to reckon with a number of factors and not all of them are likely to be to its liking.