There’s activity within our slow-poke government.
Yup, we just got a new finance minister. PC’s back. Or, as the newspaper said, PC reboots.
He’s probably reinforcing backdated taxation.
He’s hinted at interest-rate cuts.
He’s after more service-tax candidates.
He’s transferred lots of portfolios.
He’s trying to dish out motivational quotes, so that the economy revives.
“Alles klar, Herr Kommissar?”
The last time PC was in town, there was volatlity in the markets. First they went up and up and up, and then they went down and down and down. Mr. Chidambaram is a by-word for volatility.
How does he do it?
Frankly, I don’t care.
If I’m getting volatility, I’m taking it.
Not that India as a market lacks any volatility without PC.
We Indians are emotionally volatile people. When we are happy, we are sooooooo happy. When we are down and out, man, we are totally gone. No surprise that our markets reflect our topsy-turvy and dramatic emotional nature. Yes, the trader in India is blessed with a volatile trading scenario by default.
So, PC or no PC, volatile trades make themselves available to us in the Indian markets regularly. What PC does is, he gives the system’s volatility a turbo-boost. Our market’s “beta” goes up wth PC, and it goes up fast, quite fast.
Man, how does he do it?
You know, I still don’t care, but if I did, I think this would be the correct answer.
Der Kommissar seems to do it in two steps. First he creates carrots, lots of carrots. These are dangled before India Inc. Things start hotting up. Foreign investment wakes up – demand – buying pressure – our markets go up. Then, when the balloon is inflated, der Kommissar will appear on television and will let out comments (implementation of stick, like the backdated taxation thing) which the market takes exception to. Or, he might give some interview in the media which India Inc. interprets negatively. Well, down we come crashing. Frankly, I still couldn’t care less. Upwards or down, there’s a trade to be found.
Just a few days in his seat, and pivot points are leading to bounce-backs, supports are holding, resistances cracking (it’s the carrots), and technicals are very, very initially changing from “range-bound” to “trending”.
Fine, let’s just trade the Kommissar while he’s in town.
I’ve quoted Falco above and I’m quoting him again : “Alles klar, Herr Kommissar!”