Talks by the government of disinvestment and fuel subsidies may to some extent lead to improvement of the Indian economy. Decisions are delaying but a ray of hope persists amongst market investors.
On the 22nd of August, the share market fell, snapping the previous two-day rise. Whatever uptrend was witnessed in the India stock market since July was majorly contributed by foreign liquidity flows amounting to around $3 billion. And this has happened even without the government announcing any fiscal reforms.
You can well imagine the positive consequences when fiscal measures get announced by the government! Amid the market players that were a puppet of volatility, one of the biggest losses was faced by Bharti Airtel Ltd. NSE shares, the shares of which fell 3.8 percent to their lowest close (22nd August) since Oct. 2006. News about the potential entry into voice and data segments by Reliance Infotel, a unit of Reliance Industries, has led to Airtel shares downtrend.