CAFE
COM:PORT
CHAT JOCKEYS
EVENTS

The Budget Chat

'The Sensex will boom'

SKT (MON JUL 22 19:47:14 1996 IST):
lop

LANM (MON JUL 22 19:57:03 1996 IST):
Hey guys, when will this Chat begin?

LANM (MON JUL 22 19:57:40 1996 IST):
Hullo. I thought the Budget was very disappointing. Manmohan Singh where art thou?

LANM (MON JUL 22 20:00:20 1996 IST):
Anyone there?

YAZAD (MON JUL 22 20:01:36 1996 IST):
LANM: Just about ready to roll, hold on for a sec? And thanks for dropping in, friend...

INDIA TODAY (MON JUL 22 20:02:40 1996 IST):
This is Saurav Sen from India Today. Anyone there? Can we have the dramatis personae pls???

YAZAD (MON JUL 22 20:03:49 1996 IST):
hi guys, we're ready to go right away. but wait, we've got a celebrity here with us -- Mr Raghu Palat -- who is the head of the Bank Internasionale Indonesia. Mr Palat, what is your overall view of the Budget?

RAGHU PALAT (MON JUL 22 20:04:58 1996 IST):
My overall view is that the budget was unexciting, bland and disappointing. It was populist in nature and will not really help the capital markets or industry for that matter.

LANM (MON JUL 22 20:05:15 1996 IST):
Is this the same Mr Palat, who has written a couple of books on investment?

LANM (MON JUL 22 20:05:44 1996 IST):
When are the other guys coming in?

RAGHU PALAT (MON JUL 22 20:05:44 1996 IST):
LAMN: Yes. I hope you enjoyed them.

YAZAD (MON JUL 22 20:06:01 1996 IST):
SAURAV: thanks for dropping in. what do you have to say about the budget? Do you agree with Mr Palat?

INDIA TODAY (MON JUL 22 20:06:16 1996 IST):
Mr Palat, do you think the budget hints at continuity in reforms, at the same pace?

RAGHU PALAT (MON JUL 22 20:06:25 1996 IST):
LANM: In half an hour

AB (MON JUL 22 20:06:42 1996 IST):
Did the FM have options or has he taken the line of least resistance ?

YAZAD (MON JUL 22 20:07:30 1996 IST):
Mr Palat, i thought that there were a few sparks in the budget. like the corporate tax surcharge being halved. like the sops on the long-term gains tax front. won't these enthuse the stock market?

RAGHU PALAT (MON JUL 22 20:07:48 1996 IST):
India Today: Although there is an intention for continuity in reforms, I don't think it will progress at the same rate as it doesn't encourage large capital investment or FDI.

LANM (MON JUL 22 20:07:49 1996 IST):
They were useful reading for an NRI. But why did Mr Chidambaram produce such insipid stuff? Did he get scared of the
Marxsists? These bloody Communists will ruin the country!

INDIA TODAY (MON JUL 22 20:09:19 1996 IST):
But still, efforts have been made, despite the pulls of political contradictions, to assuage the salaried class? Could have been better of course...

LANM (MON JUL 22 20:09:24 1996 IST):
Do you think, Mr Palat, that this Budget will put us behind the other developing markets by five years?

AB (MON JUL 22 20:09:42 1996 IST):
Folks,what would u say r the 3 main items in the budget?

YAZAD (MON JUL 22 20:10:15 1996 IST):
AB: sorry to preempt mr palat, but i feel the budget was simply a trial balloon floated by mr chidambaram to see how his government partners would react, and to see which direction his next budget should take. perhaps we can expect something more revolutionary next year?

INDIA TODAY (MON JUL 22 20:10:38 1996 IST):
Dont you think with the profile of the coalition, we could have actually expected worse stuff?

RAGHU PALAT (MON JUL 22 20:10:50 1996 IST):
Yazad: The corporate tax surcharge was brought in for a totally different purpose and should have been aboloshed years ago. Even though it was halved, MAT has been introduced, and I don't think the capital gains incentives are really all that exciting.
ab: I think the Finance Minister has taken the line of least resistence. He probably didn't have any other choice as he had to satisfy so many parties with diverse views and priorities.

RAGHU PALAT (MON JUL 22 20:10:51 1996 IST):
Yazad: The corporate tax surcharge was brought in for a totally different purpose and should have been aboloshed years ago. Even though it was halved, MAT has been introduced, and I don't think the capital gains incentives are really all that exciting.
ab: I think the Finance Minister has taken the line of least resistence. He probably didn't have any other choice as he had to satisfy so many parties with diverse views and priorities.

AB (MON JUL 22 20:11:08 1996 IST):
Folks,what would u say r the 3 main items in the budget?

LANM (MON JUL 22 20:11:14 1996 IST):
Yazad, whoever you are:There may not be a second Budget for Mr Chidambaram. He will be another Yashwant Sinha!

YAZAD (MON JUL 22 20:11:35 1996 IST):
the three main items? the outlay on education. the thrust on anti-poverty programmes. the MAT on company profits.

AB (MON JUL 22 20:12:18 1996 IST):
sorry,message rptd by mistake

LANM (MON JUL 22 20:12:41 1996 IST):
Saurav: I think Mr Chidambaram is made of sterner stuff. I think he just kow-towed to these regressive forces, the Mulayam Singhs and the Yechuris.

YAZAD (MON JUL 22 20:12:51 1996 IST):
LANM: perhaps dear mr chidambaram may have a second budget. especially if the political equation swings in such a way that the congress returns to power after the Tamil Maanila Congress merges with it!! what do you think?

RAGHU PALAT (MON JUL 22 20:13:51 1996 IST):
India Today: Probably, but then the fortunate factor is that we do have Mr. Chidambaram as the Finance Minister, and he has done the best he can in difficult circumstances. LANM: In regard to whether this would set us back, it depends on the countries you are talking about. If it is countries such as Malaysia, most definitely. It really depends on the country you are referring to.

LANM (MON JUL 22 20:14:11 1996 IST):
Yazad: I doubt it! Why would the Congress-TMC settle for Chidambaram when nthey can have the real thing? The good doctor himself.

LANM (MON JUL 22 20:15:09 1996 IST):
Mr Palat: Mr Chidambaram spoke of attracting $ 10 billion in FDI annually. Do you think this is possible with this Budget?

RAGHU PALAT (MON JUL 22 20:15:12 1996 IST):
ab: I think the three main items in the budget is containing the deficit to five percent, reducing the surcharge payable by corporates and permitting the companies to issue non-voting shares which they can redeem after 20 years.

YAZAD (MON JUL 22 20:15:56 1996 IST):
LANM: the good doctor may not be such a hot political entity anymore. besides, chidambaram is viewed as younger, moredynamic. no?

GANDHI (MON JUL 22 20:16:06 1996 IST):
Mr. Palat they say that the BSE is never happy would u agree

RAGHU PALAT (MON JUL 22 20:16:36 1996 IST):
LANM: No, this budget will not be able to attract ten billion dollars. Having said that, as there is some interest in India, inspite of this budget there will be some FDI.

YAZAD (MON JUL 22 20:16:52 1996 IST):
hey guys, there's another star rising on our horizon. mr pashipati advani has arrived and ready to give you the lowdown on what he believes the budget means to us.

LANM (MON JUL 22 20:17:00 1996 IST):
Mr :Palat: As head of a foreign bank, where would you place India among the developing markets of Asia?

RAGHU PALAT (MON JUL 22 20:17:39 1996 IST):
Gandhi: I do not agree with that at all. The last few budgets of Dr Manmohan Singh made the BSE as ecstatic as they are capable of being.

MR.PASHUPATI ADVANI (MON JUL 22 20:18:29 1996 IST):
Hi guys, I am a happy BSE Broker - I think that this is a a great market budget. Reliance has closed at 249.50

RAGHU PALAT (MON JUL 22 20:18:30 1996 IST):
LANM: I would say that India has probably the greatest potential among all the emerging nations. However, we as a nation are our own worst enemies.

MR.PASHUPATI ADVANI (MON JUL 22 20:19:16 1996 IST):
Hi guys, I am also a happy NSE broker NSE shut an hour earlier Reliance closed at 248.

YAZAD (MON JUL 22 20:19:45 1996 IST):
mr advani, reliance may have closed higher only because of the operation that is going on in the scrip at the moment, isn't it? what about other pivotals?

FIRST WORLDER (MON JUL 22 20:19:58 1996 IST):
Mr P: this matter of nonvoting shares- how bi a deal is this?For whom?

FIRST WORLDER (MON JUL 22 20:20:21 1996 IST):
bi=big

LANM (MON JUL 22 20:20:36 1996 IST):
Mr Advani, so will the Sensex boom?

RAGHU PALAT (MON JUL 22 20:21:16 1996 IST):
First Worlder: This will help raise capital and also help the promoters and management to retain control without fear or threat of a takeover.

LANM (MON JUL 22 20:21:41 1996 IST):
Mr Palat: Let us stop being patriotic. Does this Budget put us back or not? I need to know because I plan to return to India soon.

YAZAD (MON JUL 22 20:22:00 1996 IST):
frankly, what i would like to know is, how will this budget affect inflation and prices. and how will this affect interest rates? mr
palat?

MR.PASHUPATI ADVANI (MON JUL 22 20:22:06 1996 IST):
With regard to new FII investment -- it was a great disappointment that the FII ceiling was not raised to 49% a la the Indonesian model. The point of allowing single FIIs to buy 10% instead of 5% as before is not understood -- perhaps one of you people can enlighten me. FIIs investing in unlisted securities is good for infrastructure - I guess

FIRST WORLDER (MON JUL 22 20:22:36 1996 IST):
Will the public buy these nonvoting shares?Will they trade at a discount?

RAGHU PALAT (MON JUL 22 20:23:07 1996 IST):
LANM: First off, where are you from? AS to your question, I don't think the budget really puts us back - but it doesn't take us forward either. Go ahead and book your ticket, we need you to maybe give us the forward push...

MR.PASHUPATI ADVANI (MON JUL 22 20:23:41 1996 IST):
LANM: The Sensex will boom We are quoted on Reuters a month ago that the SENSEX will be at 4135 by the end of July I think I will be close

RAGHU PALAT (MON JUL 22 20:24:16 1996 IST):
First Worlder: These will probably be bought by the larger financial institutions. They may also be such that they would give preferential dividends and maybe used as an investment alternative by individuals.

LANM (MON JUL 22 20:25:33 1996 IST):
Mr Advani: In which industries would you recommend investment?

MR.PASHUPATI ADVANI (MON JUL 22 20:26:48 1996 IST):
Yazad: There has been actual FII buying at lower levels leading to a slight technical overbought position However, Reliance does seem to have some benefits in excise duties - as opposed to the tax that will have to be paid.

MR.PASHUPATI ADVANI (MON JUL 22 20:26:48 1996 IST):

RAGHU PALAT (MON JUL 22 20:27:03 1996 IST):
Yazad: The recent hike in petroleum prices and high interest costs due to the il-liquidity in the markets will ensure that inflation will go up. Interest rates will probably remain at the present levels until the next credit policy is announced in September

YAZAD (MON JUL 22 20:27:43 1996 IST):
LANM: have you checked out the NRI Zone on Redif On The Net? I'm sure there will be a lot of things there that would be of interest to you. especially before you return. and if you hang on till 9 (IST) Mr a n shanbhag will be with us on chat, so you can pick his brains too a bit.

AB (MON JUL 22 20:27:49 1996 IST):
Mr Advani:what is the basis of yr optimism on the Sensex?

LANM (MON JUL 22 20:28:05 1996 IST):
Mr Palat: Do you think the Marxists will asphyxiate Chidambaram's functioning? Perhaps even throwout Coke.

RAGHU PALAT (MON JUL 22 20:29:17 1996 IST):
LANM: No, but I think the FM will find it very difficult to function. No, I do not think Coke will be thrown out, because the repercussions are too horrendous to contemplate. By the way, WHERE ARE YOU FROM?

MR.PASHUPATI ADVANI (MON JUL 22 20:29:23 1996 IST):
LANM: Any industry that will benefit from infrastructure investment like Larsen ( L & T ), ABB, BHEL, SIEMENS, GEC - Alstrom, Hind Const, Simplex Concrete. Others that will benefit are automobile and auto ancillaries - as they were expected to be taxed and were not

YAZAD (MON JUL 22 20:29:42 1996 IST):
hey, they cannot throw out coke without sending the message that foreigners are not welcome. and that would make it dificult to raise money for infrastructure projects.

LANM (MON JUL 22 20:30:23 1996 IST):
Mr Palat: Guess you are new to Chat. We internauts like to preserve our anonymity.

LANM (MON JUL 22 20:31:03 1996 IST):
Yazd: I love Coke, man. They can kick out Pepsi if they want.

MR.PASHUPATI ADVANI (MON JUL 22 20:31:07 1996 IST):
AB: Brokers make more money in BULL markets !!!

YAZAD (MON JUL 22 20:31:07 1996 IST):
mr palat, is the outlay for infrastructure really enough in the budget, or is it just an indicator to the trend in the next couple of years?

RAGHU PALAT (MON JUL 22 20:31:29 1996 IST):
LANM: Sure, but do Internauts even fight shy of revealing their location? Just asking...

YAZAD (MON JUL 22 20:32:01 1996 IST):
LANM: i guess we come from opposite poles. i think coke is merely hyped. pepsi is the REAL real thing.

YAZAD (MON JUL 22 20:33:20 1996 IST):
mr advani, we seem to have gone back a step by introducing the Minimum Alternate Tax. will this make too big a dent in corporate profits?

RAGHU PALAT (MON JUL 22 20:33:34 1996 IST):
Yazad: I don't think the outlay is adequate. Because our roads, communication systems etc need a lot more to bring it up to state of the art. The government is hoping that the new infrastructure companies floated will raise the money. They may, but there will be a long gestation. I would have preferred if the government gave incentives to industry or to companies abroad to develop these very essential services.

LANM (MON JUL 22 20:33:41 1996 IST):
Mr Palt: not from Indonesia, I assure you!

RAGHU PALAT (MON JUL 22 20:34:25 1996 IST):
LANM: Wow.... *deep sigh of relief here*

YAZAD (MON JUL 22 20:35:36 1996 IST):
mr palat, what kind of incentives do you see? for foreign companies planning to enter infrastructure, i mean. and won't giving such incentives make the indians scream about level playing fields again?

HKINDIAN (MON JUL 22 20:36:14 1996 IST):
Hey,u chaps in Bombay,how did the stock market react to the budget?

RAGHU PALAT (MON JUL 22 20:37:08 1996 IST):
Yazad: The FM hasn't announced any incentives other than the incentives that he will give these new corporations being set up. I don't think the Indians will scream about level playing fields because they have become much more mature now.

LANM (OULD BE SOLD ONLY ON THE PAVEMENTS OF INDIA. THE > ONLY REASONRAGHU PALAT IST):
> Date: Thu, 18 Jul 1996 16:12:33 -0300 > From: Dwarak Punja > To: chat@redif.rediff.co.in > Subject: Re: The Annual Budget 1996-1997 > Chatmaster wrote: > > > > Dear Friend > > The Annual Budget in India has traditionally been an Event in all > > possible forms, more so after the Congress government began a process of > > economic restructuring that would cut out the deadwood and instill some > > mobility into the Indian economy. > > This year's Budget has sparked even more interest, given that it is the > > first (and perhaps the last?) from a coalition -- the United Front -- > > whose economic policies are far from crystallised. Will the Budget > > strangle the entry of multinationals and foreign capital? Will it > > introduce some meaningful austerity in the spendthrift bureaucracy? Will > > it restructure the monolithic and capital-hungry public sector? Will it > > rein the deficit to a manageable percentage of GDP? Will it be able to > > raise revenues without raising taxes? > > Or will it trod escapist middle path and assuage its myriad vote banks? > > Find out all about it on the Budget Special Chat on Rediff On The NeT. > > July 22, 2100 hours IST (1130 hours EST). > > Rediff On The NeT - www.rediff.co.inHello there > > I am a recent immigrant to Canada from India. One of things that I have > noticed among the NRI's here is there immense capacity to put India down > in every conceiveable manner. I am talking of professional Indians here > holding good positions. The fact is these people have been away from > India for so long and had left straight out of school or college that > they have no experience about actual Indian conditions. > > I am an Engineer with about 12 years of experience in India, and do know > of most conditions in India. > > Quality - a common complaint is that all products in India are > sub-standard. This is just not true. 90% of the stuff here is of such > poor quality that they would be sold only on the pavements of India. The > only reasonRaghu Palat

SKT (MON JUL 22 20:39:19 1996 IST)
:-o

RAGHU PALAT (MON JUL 22 20:39:20 1996 IST):
Dwarak Punja: Is this e-mail? hate mail? Or just a space filler? Sorry, chap, could you frame your question in normal mode? Thanks...

YAZAD (MON JUL 22 20:39:29 1996 IST):
Dwarak Punja: Hey guy, come in from teh cold. we didn'y get your message too clearly, although you seem to be making some valid patriotic points. can you send again?

MR.PASHUPATI ADVANI (MON JUL 22 20:40:28 1996 IST):
HK Indian: This was not as reactionary as normal. Overall, the market liked it -- the SENSEX was up to over 3800. Tomorrow will tell -- as educated, enlightened souls burn the midnight oil to decipher this budget.

LYN (MON JUL 22 20:41:47 1996 IST):
Hi guys. How was the Budget? Fish or Fowl?

YAZAD (MON JUL 22 20:41:48 1996 IST):
mr advani: we'll need to burn more than midnight oil. just to find some spark in the budget.

YAZAD (MON JUL 22 20:42:39 1996 IST):
lyn: welcome aboard. it sticks like a fish. squawks like a fowl. basically neither.

RAGHU PALAT (MON JUL 22 20:42:51 1996 IST):
Lyn: More like the curate's egg - good in parts. But not in many parts, more's the pity!

HKINDIAN (MON JUL 22 20:43:37 1996 IST):
mr advani-pl burn some of that oil now-whats in this budget?

YAZAD (MON JUL 22 20:43:38 1996 IST):
skt: what's shocked you so much? the budget, or the way we're ripping into it?

SHAILU (MON JUL 22 20:44:38 1996 IST):
Hi friends: what kind of message this budget sends for a common man?

RAGHU PALAT (MON JUL 22 20:45:31 1996 IST):
Shailu: The common man should be hung and quartered. Hey, not me, that's the FM saying it...

DWARKA (MON JUL 22 20:45:41 1996 IST):
From: Dwarak Punja I am a recent immigrant to Canada from India. One of things that I have noticed among the NRI's here is there immense capacity to put India down in every conceiveable manner. I am talking of professional Indians here holding good positions. The fact is these people have been away from India for so long and had left straight out of school or college that they have no experience about actual Indian conditions. I am an Engineer with about 12 years of experience in India, and do know of most conditions in India. Quality - a common complaint is that all products in India are sub-standard. This is just not true. 90% of the stuff here is of such poor quality that they would be sold only on the pavements of India. The only reason why it does not show here is because you can return whatever you want - big deal. Unhygenic conditions - we use water and people here use paper. the story goes on and on. I think NRI's need to be educated and not pampered. The NRI's are plain blind not to put their money in fixed depoisits in India, for the interest rates there. "Reason - what if the bank folds after all anything is possible in India." I ask them can they give me one instance of an Indian bank folding up and there is silence. If you want me to go on and on let me know. Our countrymen here need education at grassroots. Dwarak Punja e-mail: dwarak@atcon.com

RAGHU PALAT (MON JUL 22 20:47:53 1996 IST):
D Punja: Thanks, now could you send copies of this to leading Canadian papers and other media outlets? We figure from your note that it is the Indians out there that need telling, not us here.. We believe in India, that's why we're here.

TECHN (MON JUL 22 20:48:11 1996 IST):
Have they done anything for the venture capital industry?

SHAILU (MON JUL 22 20:49:42 1996 IST):
hey that's very bad, It was expected to be a more populist budget? what do you all think ...

RAGHU PALAT (MON JUL 22 20:50:13 1996 IST):
techn: Only in regard to SIDBI, but no incentives have been given to entrepreneurs to create venture capital funds.

YAZAD (MON JUL 22 20:50:38 1996 IST):
shailu, if you think this was not a populist budget, perhaps you need to read the FM's speech again. it was populist to the hilt!

RAGHU PALAT (MON JUL 22 20:51:15 1996 IST):
Shailu: Nothing could be more populist than this. Unless Jyoti Basu and others were to be given cash incentives for being who they are.

LYN (MON JUL 22 20:51:16 1996 IST):
What is amazing is that all you guys are only concerned about FDI and venture capital and sensex and all that stuff. But what about all those poor Indians? Don't you care about them? Don't you guys realise that India will erupt if you don't look after these peop;le?

LYN (MON JUL 22 20:52:21 1996 IST):
I amaze at all you big shots. I am not saying don't make money, but look after the poor, for Chrissake. All this imbalance is
going to lead to a social catastrophe!

RAGHU PALAT (MON JUL 22 20:53:07 1996 IST):
Lyn: We only analyse the budget, friend - we don't make it. Additionally, we are looking at how the economy will grow, which is the need of the hour. The poor man has really been looked after in this Budget. It is the others we are concerned about. Like the salaried employees, for instance.

MR.PASHUPATI ADVANI (MON JUL 22 20:53:13 1996 IST):
HK INDIAN:

YAZAD (MON JUL 22 20:53:47 1996 IST):
hey, lyn, it seems every heart blleds for the 'poor indian'. except for the poor indian himself/herself. the poor indian is more interested in somehow becoming a rich indian.

RAGHU PALAT (MON JUL 22 20:54:15 1996 IST):
Lyn: The economy has to be developed before imbalances are corrected. History will teach you that. Look at the industrial revolutions in the UK and the USA.

KRISH (MON JUL 22 20:54:42 1996 IST):
Does anyone mind summarizing for me what the budget said-I emean one is far away and not quite sure what has happened..

YAZAD (MON JUL 22 20:55:18 1996 IST):
lyn, don't you think that if there is overall growth the poor indian too will benefit? instead of giving him fish, we should teach him how to fish. yeah, yeah i know - corny as hell

RAGHU PALAT (MON JUL 22 20:56:29 1996 IST):
Krish: In one short sentence, highly populist and politically motivated. Very bland. Totally unexciting.

LYN (MON JUL 22 20:56:39 1996 IST):
Please don't be frivolous about this. It's serious, dammit! Can't you guys see? India is headed for catastophe, and there won't be anything if it does. No sensex. No coke. no nothing.

YAZAD (MON JUL 22 20:57:14 1996 IST):
krish: how far away are you? anyway, a bland, political motivated, pro-poor, pro-truck drivers, pro-hamaals, etc budget.

ASN (MON JUL 22 20:57:57 1996 IST):
What were the options before the finance minister and how best did he utilise them? Do you think Mr Chidambaram can go to bed tonight, satisfied he has done a good job?

RAGHU PALAT (MON JUL 22 20:58:07 1996 IST):
Lyn: Okay, let's get serious here. What solutions would you suggest, considering we have a very strange coalition government that is, in your own words, neither communist fish nor capitalist fowl?

LYN (MON JUL 22 20:58:26 1996 IST):
:-o:-o:-o:-o:-o:-o:-o:-o:-o:-o:-o:-o:-o

YAZAD (MON JUL 22 20:58:37 1996 IST):
india, my dear lyn, is not headed for catastrophe, for the simple reason that if the poor indian cannot get off his backside and contribute, he will not do it to revolt either. remember how much coaxing the poor indian needed just to become free from
colonists!

MARYANN-BOSTON (MON JUL 22 20:58:54 1996 IST):
Can anyone tell me how all this will affect my retired 75-year old mother in Bangalore?

MR.PASHUPATI ADVANI (MON JUL 22 20:59:32 1996 IST):
Lyn: We heartily agree with your point of view -- this budget has very little for education - but it is more than last year at least. I also like his "gift" of Rs 5 crores ( $1.25 Million ) for residential schools for the poor. His other "gifts" like homes for hamals and old people are drops in the ocean and should have not even been mentioned in the budget speech. All these sops are just vote catching devices, demagoguery etc. I would have expected more from a Harvard MBA ( Chidambaram )

YAZAD (MON JUL 22 20:59:59 1996 IST):
i repeat, the budget was nothing but a trial balloon in advance of the real thing next year, if, as LANM says, there is a next year for chidambaram.

RAGHU PALAT (MON JUL 22 21:00:11 1996 IST):
ASN: Chidambaram will go to bed anyways. As to whether he will do so with a sense of satisfaction, I suspect he will be happy that he did the best under the circumstances. He is like a juggler with half a dozen eggs afloat, trying to keep them all intact. I just hope none fall on his face.

TAKAHIKE (MON JUL 22 21:01:24 1996 IST):
hi room

RAGHU PALAT (MON JUL 22 21:01:39 1996 IST):
Maryann: With the real rate of inflation at around 13 per cent, I believe she will be worse off even though senior citizens have been given a slight tax break.

MARYANN-BOSTON (MON JUL 22 21:01:43 1996 IST):
Is there any better reason now for non residents to invest in India?

MR.PASHUPATI ADVANI (MON JUL 22 21:02:15 1996 IST):
TAKAHIKE Take a Hike to our room

RAGHU PALAT (MON JUL 22 21:02:15 1996 IST):
TAKAHIKE: Is your handle a statement of intention? Or a request to the rest of us?:-)

SHAILU (MON JUL 22 21:02:49 1996 IST):
hey but after these cuts in custom duties,isn't the inflation rate going to shoot up? what do you all think PM will do to bring down the inflation rate?

RAGHU PALAT (MON JUL 22 21:02:58 1996 IST):
Maryann: No NEW reason in this budget. All one can do is appeal to your sense of patriotism.

RAGHU PALAT (MON JUL 22 21:03:25 1996 IST):
Shailu: Pray!

VIG (MON JUL 22 21:03:30 1996 IST):
Hi ya all. Who does this budget favour ? Rich man, Poor man, Middle Class jockeys or sleezy politicians?

BURANDT:SINGAPORE (MON JUL 22 21:03:39 1996 IST):
We have a joint venture trading company in India-what does this budget offer?

RAGHU PALAT (MON JUL 22 21:04:29 1996 IST):
Burandt: Nothing new. It could depend on what the activity of your firm is in regard to duties, etc.

MR.PASHUPATI ADVANI (MON JUL 22 21:04:55 1996 IST):
TAKAHIKE Take a Hike to our room

RAGHU PALAT (MON JUL 22 21:05:33 1996 IST):
vig: Poor men, and politicians. Not necessarily in that order. So what else is new?

ASN (MON JUL 22 21:06:40 1996 IST):
Where does the UF govt go from here? I know you guys are not politicians, but still. If it lasts, what can this govt do?

LYN (MON JUL 22 21:07:27 1996 IST):
What about the deficit? Do you think he has done enough to cut the deficit?

RAGHU PALAT (MON JUL 22 21:07:55 1996 IST):
ASN: Not being Nostradamus, I wouldn't want to be definite on this. But I cannot see the FM presenting another budget in this government..

VIG (MON JUL 22 21:08:20 1996 IST):
RP: Is that mean Middle Class jackasses now have to become POOR, to take advantage of the budget ? It looks like if one wants to become politician, how long a wait for the next election ?

ASN (MON JUL 22 21:08:20 1996 IST):
Yeah, what about the deficit? Is that albatross off the govt's neck?

RAGHU PALAT (MON JUL 22 21:08:36 1996 IST):
Lyn: Not really. I don't think the FM will be able to contain it within 5 per cent as he hopes to.

RAGHU PALAT (MON JUL 22 21:09:46 1996 IST):
vig: Yes, there is nothing for the middle class. It is only the poor, the rich farmers and the politicians who are looked after. Butthat's always been the case.

YAZAD (MON JUL 22 21:09:47 1996 IST):
maryann, there's no new reason for NRIs to invest in india. but the old reasons are still more than valid. is there any other place in teh world that can give you the kind of returns available here today?

LYN (MON JUL 22 21:10:04 1996 IST):
I am no economist, but you guys must have some ideas on what India needs to do, to ensure sustained growth.

SHAILU (MON JUL 22 21:10:25 1996 IST):
hey friends, but there has been no encouraging increse in the budget layout for defence? don't you think we should upgrade you security, as there has been frequent security violation in recent time?

LYN (MON JUL 22 21:10:58 1996 IST):
Mr Palat, are you there?

RAGHU PALAT (MON JUL 22 21:11:10 1996 IST):
Lyn: We do. But we don't make policy. The politicians do that. And they haven't got a clue. They are only interested in how to hold on to their chairs.

VIG (MON JUL 22 21:11:41 1996 IST):
Looks like INDIA will reap bug bucks from Intellectual Property vending companies in the next 5 to 20 years. What does this budget do for them ?

ASN (MON JUL 22 21:11:47 1996 IST):
Mr Advani, if I had Rs 100,000 to invest, please let me have the names of five cos to invest

RAGHU PALAT (MON JUL 22 21:12:08 1996 IST):
Shailu: I think enough has been allocated for defence, and the FM has also said that if more is needed, he will allocate.

MR.PASHUPATI ADVANI (MON JUL 22 21:12:16 1996 IST):
Raghu Palat: I agree with you, I do not see PC making a 5 pm speech again. Vig: I see a general election in 1997 ASN: I don't see where the revenues are going to come from as all the FM has done is give away bits and pieces

BURANDT:SINGAPORE (MON JUL 22 21:12:30 1996 IST):
Is it possible that Chidambram is all talk-when given a chance he has just got overwhelmed by his bureucrats?

YAZAD (MON JUL 22 21:12:51 1996 IST):
mr advani, if, as you say the stock market has reacted favourably, does that include fresh/heavy FII buying?

VIG (MON JUL 22 21:13:18 1996 IST):
:-o

RAGHU PALAT (MON JUL 22 21:14:10 1996 IST):
vig: Nothing special.

RAGHU PALAT (MON JUL 22 21:14:52 1996 IST):
Burandt: I think he really didn't have a choice. He had to have a budget that satisfied all his colleagues.

MR.PASHUPATI ADVANI (MON JUL 22 21:15:57 1996 IST):
ASN: L & T, Tata Power, Oriental Bank, BSES, ABB You might consider an open end mutual fund also for this amount of money. Currently, they offer very little loads.

LYN (MON JUL 22 21:16:20 1996 IST):
Let us have some lively stuff, gentlemen. I thought you guys would provide some insights on how the Indian economy can be sustained.

BURANDT:SINGAPORE (MON JUL 22 21:16:23 1996 IST):
Lack of imagination, vision I think!

RAGHU PALAT (MON JUL 22 21:17:34 1996 IST):
Burandt: what else can you expect from these clowns?

ASN (MON JUL 22 21:17:56 1996 IST):
Saurav, are you there?

KRISH (MON JUL 22 21:18:09 1996 IST):
Any stockbrokers here-what do they feel?

ZEE (MON JUL 22 21:19:17 1996 IST):
seems like a pretty wishy-washy budget to me....a tad overblown with hyperbole and a bit lacking in specifics

LYN (MON JUL 22 21:19:27 1996 IST):
Krish, there is one big shot stockbroker. Pashu Pati Advani. His resume is impressive man, but let us have some insight, Mr A.

KRISH (MON JUL 22 21:19:34 1996 IST):
Who are the 'experts' here - wedont seem to be getting any answers!

VIG (MON JUL 22 21:19:47 1996 IST):
Any idea as to how many % of revenue is to be spent on Defense, Education and Internal Security ?

RPK (MON JUL 22 21:19:56 1996 IST):
Mr Palat, with this budget, where do you see India standing, economically, a year from now?

RAGHU PALAT (MON JUL 22 21:19:57 1996 IST):
Zee: You're very perceptive. I couldn't have put it better.

MR.PASHUPATI ADVANI (MON JUL 22 21:20:18 1996 IST):
Krish: I love it

RAVI MANIAN (MON JUL 22 21:20:38 1996 IST):
More petrol prices???

YAZAD (MON JUL 22 21:20:40 1996 IST):
mr advani, was there FII buying today when, as you say the market reacted positively?

ASN (MON JUL 22 21:20:45 1996 IST):
Krish, let us decide what questions what we answered, and let us ask these guys.

RPK (MON JUL 22 21:21:12 1996 IST):
Do any of the experts here have any idea what signals the foreign investor will get from this budget?

RAGHU PALAT (MON JUL 22 21:21:18 1996 IST):
RPK: I see economic growth slowing down. The capital market will also probably continue its slide. The middle class and the fixed income group will have a really hard time.

ZEE (MON JUL 22 21:22:03 1996 IST):
no, but seriously, Raghu....did you find anything in there that specifically addresses in a meaningful and *contributory* manner to any of the "problems" facing the economy today ??

ASN (MON JUL 22 21:22:05 1996 IST):
Saurav, are you there?

RAGHU PALAT (MON JUL 22 21:22:32 1996 IST):
RPK: The foreign investors will not be particularly excited. I think he will look elsewhere also.

RPK (MON JUL 22 21:23:08 1996 IST):
Mr Palat...meaning that when it comes to presenting the next budget, things are going to get all the more complicated for our FM? By the way, let's play let's pretend: pretending that Manmohan Singh was FM today, what sort of budget do you think he would have come up with?

ASN (MON JUL 22 21:23:14 1996 IST):
Krish?

HKINDIAN (MON JUL 22 21:23:14 1996 IST):
u guys seem to have an insiders club,who is Pasu pat, who is Palat?

VIG (MON JUL 22 21:23:28 1996 IST):
RP: You sound very negative. Why ? Are there any specifics you can share with us for your blues ?

YAZAD (MON JUL 22 21:23:35 1996 IST):
krish:what's your question?

ASN (MON JUL 22 21:24:47 1996 IST):
HK INdian: Pasupati as in Pasupati Advani. Palat as in Raghu Palat.

RAGHU PALAT (MON JUL 22 21:25:26 1996 IST):
Zee: The budget does attempt to help the poor and recognizes the fact that the infrastructure is lacking and needs to be developed. But the reforms are not adequate, and I think there will be a long gestation.

YAZAD (MON JUL 22 21:25:38 1996 IST):
HKINDIAN: Palat is Mr Raghu Palat, you missed his intro. Pashupati is Pashupati Advani. Cheers.

LYN (MON JUL 22 21:26:39 1996 IST):
Gentlemen, does this budget augur a better future for us? Did Mr Chidambaram have an alternative?

YAZAD (MON JUL 22 21:26:44 1996 IST):
hey, someone said no experts? Heeeere's Mr Nipun Mehta. He's a trader on the OTC Exchange of India and preeeetty well informed about the economy in general and the stock markets in particular. over to you guys.

MR.PASHUPATI ADVANI (MON JUL 22 21:27:05 1996 IST):
Lyn: I admire your views so On a serious note - This budget has brought no surprises. The reform process is continuing on some kind of schedule, which will be comforting to foreign investment. Some touchy topics like the opening up of the insurance sector have been gently shoved away. Overall, people were expecting taxes on consumer goods and automobiles, but in fact some excise was reduced. The net effect is that India is approaching its global status quickly. What this means for the markets is steadiness. Another thing mentioned ( actually passed last week ) is the advent of the depositary. This will improve liquidity in the stock market also.

RPK (MON JUL 22 21:27:05 1996 IST):
There seems to be some enthusiasm over the fact that the FM has taken some real steps to set up a special bank for funding infrastructural development projects. Is this misplaced enthusiasm, Mr Palat, or do we really have cause to cheer?

ASN (MON JUL 22 21:27:22 1996 IST):
Krish, I am waiting for you. In my native Lucknow, it is pehle aap.

VIG (MON JUL 22 21:27:24 1996 IST):
RP:Are there any comments about this budget from Mr.MM.Singh ? Also, what kind of editorials if any from INDIAN rags?

RAGHU PALAT (MON JUL 22 21:28:00 1996 IST):
RPK: I think that if Manmohan Singh was the FM, then the Rupee might have become convertible, the dividend income would have been declared tax free and tax slabs would have been rationalized, including abolishing the surcharge on corporate tax. These are just a few of the things you have done.

ZEE (MON JUL 22 21:28:43 1996 IST):
Raghu : "helpi

RAGHU PALAT (MON JUL 22 21:29:27 1996 IST):
Vig: You'll have to wait for tomorrow. Incidentally, Indian newspapers are very good, not rags.

LYN (MON JUL 22 21:30:30 1996 IST):
Gentlemen, do you you envisage Mr C being ties into knots by the Marxists who have a better understanding of India?

RPK (MON JUL 22 21:30:59 1996 IST):
Mr Palat: Speaking strictly as a layman, it always strikes one as funny that we never have enough money for our own needs, but enough for lending to other countries. Rs 480 crore, I think, is the figure set aside this time. What is the logic behind this? Can't that money be better employed right here?

RAGHU PALAT (MON JUL 22 21:31:09 1996 IST):
RPK: Nothing to really cheer about.

RAGHU PALAT (MON JUL 22 21:32:06 1996 IST):
RPK: I suppose we lend to give ourselves some superiority.

ASN (MON JUL 22 21:32:29 1996 IST):
Krish. I am tired of waiting for you. Would you rate this the most disappointg Budget in recent times?

VIG (MON JUL 22 21:32:43 1996 IST):
Adios Amigos ...from the Grand Canyon State, Arizona.. Cheers. Have fun today..Tomorrow will be better..

RPK (MON JUL 22 21:33:10 1996 IST):
To our experts: Besides the fact that both used Urdu couplets to a considerable extent while presenting it, what commonalities are there between the financial programmes of Manmohan Singh and Chidambaram?

YAZAD (MON JUL 22 21:33:10 1996 IST):
nipun, how has the market reacted?

RAGHU PALAT (MON JUL 22 21:33:30 1996 IST):
Lyn: He already has been. If they do any more, he won't be able to move at all.

RPK (MON JUL 22 21:33:51 1996 IST):
Mr Palat: and then borrow to reinforce our inferiority?

LYN (MON JUL 22 21:34:01 1996 IST):
Vig. The future can only be bright for India. When are you coming home pal?

RAGHU PALAT (MON JUL 22 21:34:31 1996 IST):
RPK: You really can't compare because the circumstances are totally different.

ASN (MON JUL 22 21:34:49 1996 IST):
Who is this nupun?

NSM (MON JUL 22 21:35:15 1996 IST):
yazad : The market has not really taken the budget very enthusiastically. It appeared to be expecting far more. The BSE Sensitive index fell inthe initial stages but recovered in the end.

RPK (MON JUL 22 21:36:03 1996 IST):
Are they, really, Mr Palat? If memory serves, in Mr Singh's time the government was in a minority initially, and he too had constituents he needed to satisfy. And yet...

VIG (MON JUL 22 21:36:03 1996 IST):
Lyn: Before I really leave, My home is Arizona. I am a Yank. I do have lots of interests boths human and fianacial in INDIA..Have a great day..

RAGHU PALAT (MON JUL 22 21:36:32 1996 IST):
RPK: I agree and our debt at $99 billion is really worrying. As you know, it grew from $94.8 billion last year, and it'll probably cross the $100 billion mark soon.

YAZAD (MON JUL 22 21:36:36 1996 IST):
ASN. NIPUN, not nupun, is logged in as NSM. he is a trader on the Over The Counter Exchange of India.

NSM (MON JUL 22 21:36:54 1996 IST):
ASN : This is Nipun Mehta. I am a Dealer on the OTC Echange of India in Bombay. It is an exchange similar to the Nasdaq in the USA.

LYN (MON JUL 22 21:37:14 1996 IST):
I love you Vig. May the great Indian diaspora help our mother nation. Like the Chinks do. Have a great day!

RAGHU PALAT (MON JUL 22 21:37:32 1996 IST):
RPK: But not a group as diverse as this, and with such political motives.

RAVI MANIAN (MON JUL 22 21:38:09 1996 IST):
Why not leave the public sector alone. Rs.1 cr. to each cabinet minister. What's going on?

Yazad (Mon Jul 22 21:38:26 1996 IST):
nipun, say the FM were to abolish the double taxation on dividend, would the market have reacted more favourably? why do you think he didn't?

RPK (MON JUL 22 21:38:34 1996 IST):
Mr Palat, and others: Is the lesson being learnt here, gentlemen, this, that coalition governments are no good for this country?

P CHIDAMBARAM (MON JUL 22 21:38:49 1996 IST):
How did you guys like my budget?

ASN (MON JUL 22 21:39:13 1996 IST):
Tell me guys, is it true that pasports don't have to be renewed anymore?

RPK (MON JUL 22 21:40:18 1996 IST):
ASN: No, if you aren't planning to go anywheres... :-)

RAGHU PALAT (MON JUL 22 21:40:34 1996 IST):
RPK: We know that coalitions don't work. But in cases such as this it is power for power's sake and the consequences bedamned.

YAZAD (MON JUL 22 21:40:43 1996 IST):
Ravi, i don't know if you watched the budget on telly, but the only time the House came alive was when chidambaram announced the continuation of the MPs' fund. these guys get into parliament for one reason and one reason only -- to see how far they can line their own pockets. besides, if chidambaram had not given them this sop, they would not have voted for the budget to pass it!!

NIPUN MEHTA (MON JUL 22 21:41:45 1996 IST):
Yazad : The market would really have reacted very favourably had the double taxation on dividend been abolished. There is no particular reason for it not having been abolished.. It's just that no FM has the courage to take such a bold step since several years.

ASN (MON JUL 22 21:41:46 1996 IST):
PC man, glad to make your acquaintance. I dig your dhoti and your accent, man.

SHAILU (MON JUL 22 21:41:59 1996 IST):
why blame the coalition government. would any other government, say the BJP, actually have given a budget much different?

RAGHU PALAT (MON JUL 22 21:42:10 1996 IST):
Thanks guys: I enjoyed talking to you. I had a great time.

RPK (MON JUL 22 21:43:13 1996 IST):
Mr Palat, is that sayonara we hear?

YAZAD (MON JUL 22 21:43:44 1996 IST):
mr palat, you can't be going to bed so early!! anyway, thanks a mill for the insights, really enjoyed having you with us.

RPK (MON JUL 22 21:43:57 1996 IST):
Mr Advani, ever considered an online investment tutorial, say once a week?

MR.PASHUPATI ADVANI (MON JUL 22 21:44:21 1996 IST):
Thanks a lot everyone I am leaving you all in the hands of a very capable broker NIPUN MEHTA GOODNIGHT

YAZAD (MON JUL 22 21:45:01 1996 IST):
ASN: That's no dhoti, that's a munde. but, PC, what i like best about you is your hair - so slick and oiled.

YAZAD (MON JUL 22 21:46:06 1996 IST):
nipun, why not? what would removing double taxation mean in terms of the economy?

MANMOHAN SINGH (MON JUL 22 21:46:08 1996 IST):
PC: sorry to be rude, but that thing you read out today sends off a smell... :)

YAZAD (MON JUL 22 21:46:29 1996 IST):
and anyway, nipun, what is your overall view of the budget?

RAVI MANIAN (MON JUL 22 21:49:01 1996 IST):
Why not have software do the budget? Balanced budget - no problem. Key in priorities with weights, positive & negative Does the Finance Dept. need more work? No! ah.

NIPUN MEHTA (MON JUL 22 21:50:55 1996 IST):
Yazad : Removing double taxation on dividend would really mean a losing proposition to the Government in terms of loss of tax revenue. Though the revenue loss would not be very high, it is just that no FM has surprisingly really considered it much of a priority.

SURYAP (MON JUL 22 21:51:21 1996 IST):
hello everyone - anyone from India Today here ?

YAZAD (MON JUL 22 21:51:22 1996 IST):
ravi, hey, you're talking blasphemy! where would all our bureaucrats go? Remember, india also has an unemployment problem!

YAZAD (MON JUL 22 21:52:26 1996 IST):
suryap, there was somebody from India Today here earlier, but not anymore, it seems. why?

NIPUN MEHTA (MON JUL 22 21:53:12 1996 IST):
Yazad : My overall view of the Budgert is that it is just about an average effort which continues the effort put in Dr. MM singh. Mr. PC could have shown a little more confidence in making the proposals.

LYN (MON JUL 22 21:53:17 1996 IST):
Thanks a lot, folks! Good night.

YAZAD (MON JUL 22 21:54:21 1996 IST):
see ya lyn. give all the poor indians our very best.

ASN (MON JUL 22 21:54:40 1996 IST):
Mr Mehta, I have Rs 100,000. Give me ten shares that I can invest in and make Rs 200,000 next year this time.

SURYAP (MON JUL 22 21:55:41 1996 IST):
thanks, yazad. one more question - any journalists from Delhi, India ??

ASN (MON JUL 22 21:57:52 1996 IST):
Come on, Mr Mehta.

A N SHANBHAG (MON JUL 22 21:59:04 1996 IST):
hi people, i'm a n shanbhag, For an individual tax payer, if you have any questions I will try to answer.

ASN (MON JUL 22 22:00:11 1996 IST):
Listen guys, if I wait this long, I won't be able to make any dought. Or are you guys scared to go out on our limb like Pashu?

YAZAD (MON JUL 22 22:00:32 1996 IST):
suryap, none that have identified themselves as such. who might you be, by the way?

ASN (MON JUL 22 22:00:32 1996 IST):
The A N Shanbhag?

YAZAD (MON JUL 22 22:01:01 1996 IST):
mr shanbhag, for an NRI, has there been anything in this budget worth cheering about?

NIPUN MEHTA (MON JUL 22 22:01:15 1996 IST):
ASN : Doubling your money on the Indian Stock markets in just about a year is not going to be very easy. Anyway invest in infrastructure and turnkey project companies.

YAZAD (MON JUL 22 22:01:42 1996 IST):
yes, ASN, THE a n shanbhag

RAVI MANIAN (MON JUL 22 22:02:08 1996 IST):
Mehta: What is in for the stock market this week?

A N SHANBHAG (MON JUL 22 22:02:59 1996 IST):
Mr. Yazad sorry none whatsoever.

DALAL STREET (MON JUL 22 22:03:11 1996 IST):
Everyone: Why should I pay taxes to a corrupt governemnt ? I cannot sleep at night cause the thought has been giving me sleepless nights

DALAL STREET (MON JUL 22 22:03:12 1996 IST):
Everyone: Why should I pay taxes to a corrupt governemnt ? I cannot sleep at night cause the thought has been giving me sleepless nights

NIPUN MEHTA (MON JUL 22 22:03:49 1996 IST):
Ravi Manian : From the initial reaction, the market does not seem to have taken the budget very excitedly. It still seems to be in for some uncertain times.

YAZAD (MON JUL 22 22:04:32 1996 IST):
mr shanbhag, that's unfortunate. how will the little sop of reducing the bottom rate of tax going to affect taxpayers in that slab? And what will it raise for the exchequer?

AKD (MON JUL 22 22:05:42 1996 IST):
Hello. Mr Shanbhag, you don't like shares. Are there any schemes in this Budget to help me save taxes? Please do help.

ASN (MON JUL 22 22:06:08 1996 IST):
Which comanies, Mr Mehta? L&T?

AKD (MON JUL 22 22:07:17 1996 IST):
Mr Shanbhag, your views of the Budget? Is it as bad as everyone as made it out to be?

A N SHANBHAG (MON JUL 22 22:07:26 1996 IST):
Dalal Street: There are enough cures for your insomnia in the Income Tax Act. And please note, that voters get the government they deserve. You will do well to have a good look at the various exemptions and rebates available to individuals. Whereas this particular budget has ensured that there will be no nil tax companies anymore, it is possible for an individual to arrange his affairs in a fashion where he can be in the nil tax zone and yet not sacrifice much of returns on his investments

ASN (MON JUL 22 22:08:14 1996 IST):
Mr Shanbhag, you are awesome. What is there in it for the Nri?

NIPUN MEHTA (MON JUL 22 22:09:06 1996 IST):
ASN : L & T is good.

A N SHANBHAG (MON JUL 22 22:09:28 1996 IST):
AKD: Actually, I would hate to call it a budget. In my opinion, it is a second on account exercise. The FM in his budget speech did say that the real dose will come in the next budget due in February 1997.

AKD (MON JUL 22 22:09:35 1996 IST):
Which are the other companies? Mr Mehta

SAMIT (MON JUL 22 22:10:01 1996 IST):
hi all, i'm samit, a technical analyst from Mumbai, the greatest city in the world. and i've been watching the post-budget trading. and let me tell you, the outlook is very positive indeeeeeed.

ASN (MON JUL 22 22:10:39 1996 IST):
Someone asked earlier: Is this the worst Budget we have had in the last five years?

AKD (MON JUL 22 22:11:18 1996 IST):
Samit, you are in a majority of one. Everyone else thinks the Budget is crap.

A N SHANBHAG (MON JUL 22 22:12:35 1996 IST):
ASN: In a little while, I expect excellent sops offered to all the NRIs and OCBs and FIIs in respect of their investments in infrastructural activities. This budget has reduced a little here and a little there, but hasn't really provided for increase in the revenue. The FM appears to be depending upon the investments from abroad and from private sectors in India.

SAMIT (MON JUL 22 22:13:00 1996 IST):
mr mehta, this is my view, however humble. please respond. i feel the market has absorbed the zero-tax companies being taxed, by a minor fall during trading hours. and the market has displayed strength by closing towards the day's high. the long-term trend of the market continues to be bullish, the intermediate trend could as well turn upwards after the fortnight's consolidation. in between 3615 and 3745 points.

NIPUN MEHTA (MON JUL 22 22:13:18 1996 IST):
ASN : Companies in the power sector are good. Tata Power, BSES should be good bets.

MR.PASHUPATI ADVANI (MON JUL 22 22:13:20 1996 IST):
Thanks a lot everyone I am leaving you all in the hands of a very capable broker NIPUN MEHTA GOODNIGHT

RAVI MANIAN (MON JUL 22 22:13:23 1996 IST):
Mehta: Wipro has 10 times more sales than Infosys. But, both stocks are bidding at the same price currently. How do you explain this?

SAMIT (MON JUL 22 22:14:32 1996 IST):
ASN: it's not me that thinks the outlook is good, i'm talking about the market, from the technical reading supported by its parameters.

SAMIT (MON JUL 22 22:15:16 1996 IST):
sorry ASN, my last message was for AKD.

NIPUN MEHTA (MON JUL 22 22:15:22 1996 IST):
Samit : I would partially tend to agree with you, the long term outlook will remain bullish, however, since the opening out of the economy the stock market movements are dependent on several factors, worldwide.

SAMIT (MON JUL 22 22:16:07 1996 IST):
mr shanbhag, has there been any change at all in the 40 per cent tax zone? is there any new change that i can take advantage of to reduce my liability?

NIPUN MEHTA (MON JUL 22 22:18:22 1996 IST):
Ravi Manian : Both Wipro and Infosys belong to two different industries which attract different price discounting. The price is also dependent in the floating stock in each company. Incidentally, Infosys is in an industry where growth rates in the past several years have been high and which attracts a very high Price to earnings ratio.

A N SHANBHAG (MON JUL 22 22:19:42 1996 IST):
Samit: The only advantage that you would get is a reduction in your total tax liability by Rs 1,000 thanks to the reduction in the first slab rate from 20 per cent to 15 per cent. There are also some new schemes that give you additional tax rebates and exemptions up to rupees ten thousand.

RAVI MANIAN (MON JUL 22 22:19:58 1996 IST):
Shanbaag: How about a flat-rate tax system for India. This was wooed by presidential candidates in the U.S. Will it work in a disparate (rich & poor) economy as in India?

SAMIT (MON JUL 22 22:20:00 1996 IST):
mr mehta: technical analysis takes into account the price movements based on the demand-supply position. it considers many factors apparent as well as non-apparent. so even worldwide factors would already be discounted.

A N SHANBHAG (MON JUL 22 22:21:02 1996 IST):
samit, are you an nri or a resident Indian?

SAMIT (MON JUL 22 22:21:04 1996 IST):
mr shanbhag: what are these schemes?

SAMIT (MON JUL 22 22:21:38 1996 IST):
mr shanbhag: i am indian, to the core.

P CHIDAMBARAM (MON JUL 22 22:23:04 1996 IST):
How did you guys like my budget?

NIPUN MEHTA (MON JUL 22 22:23:13 1996 IST):
Samit : I agree, unfortunately I'm not a great fan of technical analysis, though I agree that in a good percentage of cases it works.

ASN(MON JUL 22 22:24:00 1996 IST)
Phew. See you guys.

SAMIT(MON JUL 22 22:24:01 1996 IST)
hey chidu, glad to hear from you. tell me, who twisted your arm to present this budget??

SAMIT(MON JUL 22 22:24:56 1996 IST)
mr shanbhag, you haven't answered my question.

NIPUN MEHTA (MON JUL 22 22:25:37 1996 IST):
asn : Hey wait, you can't log off so fast. Shoot off some more questions.

A N SHANBHAG (MON JUL 22 22:26:02 1996 IST):
samit : there is a pension fund enviasged to be launched by LIC which will give you a deduction up to Rs. 10,000 . moreover under section 88 the rebate for housing loan repayment ceiling has been raised to Rs.15,000 from Rs.10,000. there is one more addtition to the section 88 . any contibution to infrastructure comopnies will earn a tax rebate of 20% on an maximum amount of Rs.10,000 in addtion to the present limit of 60,000.

SAMIT (MON JUL 22 22:26:41 1996 IST):
mr shanbhag is mr wagh with you? if he is, please tell him i really enjoy The Benchmark on Rediff. i think it is the only one that takes into account the future value of rights and bonuses when calculating the returns. how do you factor in future values?

NIPUN MEHTA (MON JUL 22 22:29:59 1996 IST):
Where are all of you guys, nobody interested in the Indian stock markets ?

AKD (MON JUL 22 22:30:27 1996 IST):
Heard this one lately? Einstein up in heaven, met three souls. "What's your IQ?" he asked the first. 200. good, we can discuss the theory of relativity, said einstein. then to the second, "What's your IQ?" `150.' "Good, we can discuss world peace." And to the third, "what's your IQ?" He replied: `50.' Einstein paused, and then asked: "Do you think I should sell my shares or buy new ones now?"

A N SHANBHAG (MON JUL 22 22:30:29 1996 IST):
samit: thank you very much! the mathametical algorithm to compute the equivalent rate of returns is quite complicated and most of the analyst arrived at this figure by making some simplistic assumptions. the only reason why we are producing the benchmark is because this is the only most accurate one available.

RAVI MANIAN (MON JUL 22 22:31:07 1996 IST):
Chidambaram: How about a boxing bout with MM in Las Vegas?

SAMIT (MON JUL 22 22:31:58 1996 IST):
mr mehta, what can one say about a budget that presents more sops to the MPs than to the man on the street? Such a bland and tepid budget i have yet to see in india.

SHAILU (MON JUL 22 22:32:02 1996 IST):
Ha! Ha! Ha! Good one AKD. Too bad the hot shot broker who was here has left.

NIPUN MEHTA (MON JUL 22 22:34:00 1996 IST):
Samit : What would you liked to have in the Budget?

NIPUN MEHTA (MON JUL 22 22:35:42 1996 IST):
Shailu : If you're talking about me, I's still very much alive and kicking.

ZEOLITE (MON JUL 22 22:36:23 1996 IST):
According to Einstein when you jump up the earth comes up and gets you, not gravity

NIPUN MEHTA (MON JUL 22 22:36:46 1996 IST):
AKD : Whatever Einstein might say, I still believe if you had the choice of doubling your money or to discuss the theory of relativity, you would choose the former. Wouldn't you ?

SAMIT (MON JUL 22 22:40:52 1996 IST):
mr mehta, ZERO TAX. or a token tax of 1 per cent!!

SAMIT (MON JUL 22 22:41:35 1996 IST):
okay chaps, thanks for the buzz. great learning from you. see ya sometime at the BSE??

A N SHANBHAG (MON JUL 22 22:41:40 1996 IST):
good bye.... folks nice talking you

NIPUN MEHTA (MON JUL 22 22:42:36 1996 IST):
Good night guys... see you at the next budget.