Articles by Nishtar

Picture of Gloom Nishtar THE stock market has staged a further retreat which takes it to a point almost half-way between its January low and June high. Political uncertain- lies and prospects of a drastic budget in February, if not earlier, have unnerved speculators and investors alike. Though selling has seldom been heavy, equity prices have moved down rather sharply as the market has been virtually bereft of fresh support, The corporate news was quite encouraging but higher dividends and bonus issue announcements brought little cheer to a market which now presents a picture of gloom. Nor could the market take any comfort from the statement by the Minister of State for Finance that Government did not intend to introduce an interim budget. Whoever takes such statements seriously?

Calm amidst Political Storm THE stock market has not allowed itself to be swept away by the political cyclone which has riven the ruling Congress Parliamentary Party in two with the pro-Syndicate MPs forming a separate bloc. If the market has managed to put up a steady front it is because owing to the continued ban on forward trading there are no bears to exploit the situation. Investors are not easily scared; they are a courageous tribe and they have good reason to be bold as they have reaped an unexpectedly rich harvest this year.

Luxury

for which Premier Tyres has a "letter of intent'' to produce two million tyres and tubes per annum. Meanwhile, machinery has been imported for production of 40,000 scooter tyres/tubes a year and this will shortly go into production. During the year to March last, the company's plant could work for only 8 months because of labour trouble, Turnover declined by 10 per cent to Rs 9.07 crores, but gross profit slumped 19 per cent to Rs 79 lakhs. Net profit was Rs 57 lakhs (Rs 78 lakhs) but the equity dividend, stepped up 4 points to 10 per cent, was still covered over 3.5 times. The plant had to be shut for a month this year also, but production so far has been at a higher level compared to that in the same period last year. The raw material inventory is adequate and trading conditions are "reasonably good". This holds out promise of improved results for the current year.

Plea for Forward Trading Nishtar HOPES are running high that forward Hading in shares will be allowed to be resumed by Dassera which falls on October 20. These hopes are based on reports that the stock exchange delegation received a sympathlic hearing from the Finance Ministry officials when it visited New Delhi to submit the joint memorandum on resumption of normal market dealings. But is not 'sympathe- tic hearing1 something which one should normally expect of Government officials unless they are lacking in elementary courtesy? And had not the former Finance Minister Morarji Desai assured the stock exchange authorities that he would be willing to consider any concrete proposals for the resumption of trading on sound and healthy lines? This is precisely what the stock exchanges have done. Not that they share the official view that "steep rise" and "cornering" had generated "unhealthy trends" to warrant a total ban on forward trading. They maintain that suspension of forward trading had been notified under a misapprehension of facts and misunderstanding of the underlying issues involved Bui they had no go except to submit some concrete proposals which would meet offi- cial objections.