I haven't seen so much of economic decisions being taken in 2 days as I saw last Friday (14 Sept, 2012). In fact it took me a day or two to just digest all the facts. QE3 from the US Feds and the biggest surprise of all, the UPA government in India after years of policy paralysis, finally pushed through some reforms! The government increased the price of diesel (diesel is a subsidized fuel in India), allowed liberal FDI in multi-brand retail, aviation and broadcasting and allowed divestment in four public sector companies. Just as a columnist mentioned in today's paper - Friday's announcements have all the key words that usually have foreign investors reaching for their wallets - fiscal reform, FDI, multi-brand retail and divestment. Together with QE3, the markets are in a jubilant mood! I expect the sensex to surge in the coming weeks but it is in times like this that an investor needs to take the highest degree of care.
