ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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No Time for the Pundits

developing SDI, but will not deploy it pending negotiations with the Soviet Union. The ABM treaty, it will be recalled, was finally worked out in 1972 once the two sides had achieved the capability to deploy the ABM. It permitted each side a single such system. In the present instance, while the US may agree to stow down development of the SDI, it apparently believes that time is not ripe yet for substantive negotiations on this issue. Prior to the summit, both sides had cautioned against expectations of any breakthrough on important matters. Later, dismissing suggestions that the summit had been a failure, the Soviet Union said that "the fact that the two countries could meet and discuss in six years on this level itself is a positive sign". The reference was to the Reagan administration's deliberate ploy of delaying the summit meeting for so long, even as it engaged in a massive military build-up. A combination of pressure, especially from the US's European allies, and the propaganda gains made by the Soviet Union eventually compelled the US to agree to the Geneva summit. At the same time, through- BUSINESS WITH a brief pause here and there the stock markets have continued to inch their way after the panicky sell-off on September 30 and October 1. And the recovery they have staged over the past two months has indeed been impressive. By November 29, the Financial Express all-India equity price index had moved up by 11.8 per cent, recover- ing nearly 52 per cent of the ground lost in the preceding downswing. Among the regional equity price indices, the recovery has been more pronounced in respect of Bombay, Delhi and Madras than in the case of Calcutta and Ahmedabad. The Bombay index has moved up by 14,6 per cent, retracing nearly 61 per cent of the decline from its all-time peak established on July 22. Putting it differently, on November 29, the all- India equity price index stood 76 per cent above its January 2 mark; the index for Bombay showed a rise of a little over 82 per cent. The rise of another 8.5 per cent in the case of the Bombay index and 10 per cent in the case of the all-India index would lift these equity price indices to new all-time highs.

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