Rap from Government

Rap from Government Nishtar THE stock market has been marking time recently, moving up and down in a leisurely manner. By April 17, the market had moved so very close to the year's highest level recorded in January that it was almost inevitable that it should pause to allow technical forces have their play before taking its next important step. However, despite considerable corrective profit-taking, the market has staged only a modest retreat. Selling has been easily absorbed due to a number of bull factors. The corporate news in particular has been very favourable. Quite a large number of companies which have released their results recently have gladdened the hearts of their shareholders through larger profits, higher dividends and bonus issues. Thanks to the return flow of funds and spurt in deposits, conditions in the short-term money market have improved perceptibly. The interbank call rate has come down to 6 per cent and banks have effected a substantial reduction in their borrowings from the Reserve Bank. This has naturally raised expectations of a liberalised credit policy. Reports from New Delhi indicate that the Government is inclined to implement the licensing policy in a flexible manner with a view to stimulating industrial growth. Recent export trends have also been encouraging.