Further Retreat

Further Retreat POLITICAL and economic uncertainties have forced the sick and anaemic stock market to beat a further sharp retreat which brings it much closer to its January low. With Indira Gandhi continuing to emphasise day after day that bank nationalisation was only a small step towards the bigger goal of establishing a socialist society and that more measures were on the way, the stock market could not possibly have put up a steady front. Nor could the market be expected to take kindly to the threat of a thorough probe into private sector undertakings. The ideological warfare has been carried to a high pitch recently. The freedom fighters' convention, presided over by Home Minister Chavan, has urged Government to nationalise foreign banks, general insurance, import-export trade and private (foreign) oil companies. Political events have also been full of suspense. Unusual significance is attached to the outcome of the Presidential election which has further exposed the serious rift in the top Congress leadership. All this forebodes ill for the stock markets.