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Bull run to go on for 6 months: India Inc
BS Corporate Bureau in New Delhi | October 13, 2003 08:54 IST
Around 62 per cent of business chiefs in the country feel that the current 'bull run' in the capital markets will continue for at least six months, according to a snap poll among CEOs carried out by the Confederation of Indian Industry.
Another 13 per cent said the positive sentiments would last for only three months. Only 6 per cent of the respondents felt it would last for only a month. Nineteen per cent of the respondents did not comment.
When asked to comment on the impact of the recent Supreme Court verdict on the divestment programme for public sector oil firms HPCL and BPCL, 47 per cent of the respondents stated that the impact would be moderate.
Another 41 per cent said the setback would significantly derail the Government's divestment agenda and the remaining 13 per cent felt it would not impact the divestment process at all.
Although no consensus was arrived at the recently World Trade Organisation (WTO) negotiations at Cancun, a majority of the CEOs (50 per cent) said in the Indian context, the WTO talks had been a success.
While 28 per cent felt that the talks had not been fruitful for India, the remaining 22 per cent said it was not clear whether the talks had been successful for the country.
All the respondents were of the opinion that against the backdrop the Cancun debacle, India needed to focus more on bilateral trade relations with other countries and trade blocs.
Given that inflation was rising due to an increase in prices of diesel, petrol and food articles, the CII survey asked the CEOs what their expectations were on the level of inflation in the coming months.
A majority (84 per cent) expected inflation to remain under control and stay within the 4 per cent to 5 per cent band in the next quarter.
Another 13 per cent felt inflation would fall below 4 per cent, while only 3 per cent felt it would rise above 5 per cent.
On the rupee appreciating against the dollar, 50 per cent of the respondents felt the Reserve Bank's measures to check the appreciation would lead to exchange rate stabilisation.