Nothing Surprising: Marketmen

The promises made by the Bharatiya Janata Party in its manifesto yesterday evoked a lukewarm response within market circles. However, leading market players have welcomed the move to initiate reforms in the insurance sector.

The manifesto is not much different from what we have predicted, said Brian Brown, managing director, Indosuez Credit Agricole W I Carr Securities.

BJP continues to support liberalisation although the pace of reforms is a cause of concern. They have welcomed investments in weak sectors and have promised to provide protection to the existing players. It will not be easy to ensure a strong rupee (as mentioned in the manifesto) as exchange rate is a function of the economy, he said.

Castrols non-executive chairman S M Datta feels that it is a very carefully drafted policy. Various interest groups will find something to their liking in the BJP manifesto. They are enough possibilities left for the future government to determine the comprehensive policy after it comes to power, he said.

The move to initiate a day-to-day communication channel with the industry was also welcomed by leading industrialists and market players.

Kotak Securities managing director C Jayaram is of the view that the manifesto is in favour of promoting the local private sector. BJP is supporting the local private sector and allowing it grow. The move to initiate reforms in the insurance sector by allowing Indian private sector companies would be a positive development, he said.

The BJPs approach is very positive and it should have a good impact on stock the market. However, the important issue is what sort of majority will the party manage in the forthcoming elections, said Priyankant Dalal, of Dalal and Broacha, a leading stockbroking house based in Mumbai.