By krsna Khandelwal – A veteran market analyst
Friends,
Karnataka Assembly Election results have just been announced and the BJP has secured slightly less than the half way figure of 112 . Since others have got close to 10 seats and the Congress and JD(S) will not be having comfortable strength to form the govt. , in all probability they would not stake claim also to it ( they have not had a pre-poll alliance and hence are not that much charged). As for BJP , the going has been too good considering it has greatly improved upon its last tally in Karnataka on one hand and on the other it has shattered the long held belief that BJP would remain a north based party. Its chief ministerial candidate comes from rural back ground and therefore this also makes it a party not only of urbanites but also of farmers and villagers. These are two most important developments that will see BJP coming to power with greater conviction at the centre next time. it will also command a better respect of its NDA partners.
What are the factors that have made this outcome possible, I list out some of them as I perceive them without insisting too much should others have differing idea:
Firstly, the people in Karnataka have seen the pseudo side of govt. at centre under Congress leadership which is hell bent not to raise the petrol prices in spite of the surge in international prices and neither lowering duties on petroleum . People have seen it as a destabilising factor for the future of Indian economy as some body will have to pay some time unduly if it is not done judiciously. How far would the marketing companies will bear the burden and for whom , the lower classes do not enjoy the luxury of using petrol or diesel.
Secondly, the govts’ concern for inflation has been seen as a prank this time as it is not due to local factors and can not be wished away . The ministers how ever under its pretext give a signal that when opportune they will punish industry or pressurise whether in line with law of land or not. If duties can be tempered with in case of steel and cement to bring down the prices why not in case of petroleum products. The rise in food prices are making farming some what more advantageous and the urban people have had good salary hikes to withstand inflation.
Thirdly, the Congress has been seen as powerless at dealing with left. It has put on back burner many a reforms on account of left’s unreasonable demands. Why should then it get votes.
Fourthly, the Jaipur blasts just before the polling have convinced people that the Congress was wrong in diluting terrorist related laws.
Fifthly, the farm loan waiver was not done with a proper mechanism in place to help the really affected farmers. The tricky would have greater advantage and not the honest.
Sixthly, the denial to Kalam Saheb for another term.
Lastly, the JD was punished as it played its political roles in a dirty manner. The people also have developed a mood to vote decisively.
Now battle lines for the next general elections will be drawn and every passing day the Congress will have to answer for why its ministers are not working in tendum , why the PM does not have full authority over governance, why Sonia ji wants to control power without direct responsibility.
Hari Om
BIRDINFO Stock Rx – A prescription for stock market
