will the upa survive?
Dr.Manmohan Singh has surely sent a strong message to all, shutting down all those who have been saying that he would not have the guts to go ahead with the deal. But by going ahead, he has sent across a strong message – the deal means more to him than being in power. But there is no doubt that he has taken a big risk. Going ahead, banking on support of Samajwadi Party and the belief that he would be able to get the required 272 number. What happens if this 272 number is not met? Or is it that all the wheeling, dealing has already been done, and it is based on this confidence that he decided to stay firm? Its politics, one never knows what happens in the background!
If the 272 number is met, then there is no risk, its business as usual. But what happens if this number is not met and the Govt falls? Will the nuclear deal go through despite that? Well, regarding the falling of the Govt, elections were as such scheduled. It would just happen a few months earlier. And regarding the Nuclear Deal, the Govt would have to seek the vote of confidence and once they win vote of confidence, they would initiate the economic agenda, which they were restrained by the Left till now. And this would be one big positive for the markets!
The stock markets took this news in its stride. The moment the Left pulled the plug, the markets recouped by around 150-200 points. It is currently down some 230 points. The markets are expected to remain in the negative till the magic number of 272 would be met. This means the market will now have to wait for two numbers – 272 and inflation on Friday! Indeed, a decisive week ahead!
