M A I L B A G

Sensex shows a buoyant economy

The strong upward movement despite negative global cues shows the inherent strength of Indian stocks and economy (Jayshree Sengupta’s article, “Rising Sensex”). Mop up of direct and indirect taxes till October 2007 showed a highly buoyant economy and good corporate performance. Sensex should easily cross 21600 points mark by year-end and any dip in the market shall be viewed as an opportunity to pick up stocks.

When Sensex moved from 6000 to 12671 in 2005-06, there was a general feeling amongst investing public that market would undergo a correction. There is no cause for market to correct amidst reports of robust economic growth and lower inflation.

Moreover, most sectoral Indices are showing valuations at levels around 15 to 20 times. Thus, though apprehensions are obvious on the basis of high numeric level of Sensex, the fears are not justified by underlying data of the most sectoral indices except capital goods and realty sectors. Bullish trends are gradually turning widespread and encompass participation by retail investors also in the bull run.

BHARAT D. MOMAYA, Thane West, Mumbai

II

Sensex reaching great heights has little meaning for the common man. An estimated 1.5 per cent of Indian households invest in stocks while over 60 per cent of the households don’t have even a bank account. This at a time when growth is projected at 9 per cent and the inflation rate is gyrating between 6 and 7 per cent (entirely based on wholesale prices of essential commodities like food products and manufactured goods).

On account of the resulting low purchasing power, over 350 million men, women and children go to bed hungry every day. The fruits of economic development are being cornered by a few. The social, economic and geographical divide in India is not a new phenomenon. But the express changes in globalised India has given the divide a new edge. The Indian corporate sector should fulfill its social responsibilities.

GAURAV JULKA, Ferozpore City

Punish witnesses for perjury I read the editorial, “Flip-flop witness” (Nov 17). I agree that flip-flop witnesses play havoc with the law. Either they are swayed by money or are intimidated through the muscle power. Witnesses like that of Nand Lal, who changed his statement in the Nithari case, are more or less criminals; rather they overtly or covertly become accomplice to the crime perpetrated on the innocent. Nand Lal, the key witness to the Nithari serial killing case, not only deceived those who had fallen victim to the devilish misdemeanor of Moninder Singh Pandher but also betrayed his own daughter, Payal, who is believed to be the victim of Pandher’s lust for sex and blood. If criminals like Pandher get away scot free, the onus lies on the flip-flop witnesses and the criminal justice system as well. Our present system has become so lax that criminals can buy the witnesses any time. Sometimes they are not provided security and the criminals force them to retract from their earlier statements. It is time all flip-flop witnesses were punished for perjury. Dr VINOD K. CHOPRA, Hamirpur

Inflation blues

The Centre is taking pride for reducing inflation to 297 per cent. According to Keyne’s, if we squeeze money too much from the economy, this disinflationary trend will lead to a rise in unemployment, trade off investment etc., which India cannot afford; the nation is already confronted with depressed activities.

Both unbridled inflation and deflation are bad. Therefore, there is need for controlled inflation and deflation. At present, we are not facing problems because of good inflow of FDI, but the same can be curtailed by external forces. Such FDI is highly flexible and undependable. The economy suddenly crumbles.

Prof Y.L. CHOPRA, Bathinda

Defending retail

The small traders’ opposition to big houses entering the market retail is misplaced. Even earlier, we had super bazaars which didn’t harm the small traders. Super bazaars will indeed help people get daily necessities at cheaper rates.

We see big shopping malls coming up everywhere. Owned by local sharks, they cater to the needs of the neo-rich. The malls should worry us more than the customer friendly big retail. In fact, we should neither oppose big retail nor big malls. They are sophisticated and provide shopping pleasure. They are symbols of progress and prosperity. Small traders can surely co-exist.

Wg-Cdr C. L. SEHGAL (retd), Jalandhar