New Delhi: Good news continues to flow. As the sensex clsoed above 10,000 for the first time, the Central Statistical Organisation pegged the advance estimates of GDP growth for the current fiscal, at 8.1 per cent.
The fundamentals are strong but don't go over the top. Both the Finance Minister and the SEBI chairman have advised caution.
"8.1 per cent growth and a 10,000 sensex is a heady mix. But we should not loose our cool. There is a temptation to walk down the slippery paths. But we should resist that temptation," Chidambaram said.
"We should walk down the path of fiscal prudence, judicious allocation of funds, tight expenditure control, completing projects on time and within cost estimates and generally promoting savings and investments. It is sound fiscal and monetary policies which have brought this improvement," he added.
Just ahead of the budget, the Finance Minister seems to be hinting on the need to stick to the targets set by Fiscal Responsibility and Budget Management Act,which were relaxed last budget.
The Finance Minister also had some advice for retail investors.
"Do your research and invest wisely. If you cannot research, invest through mutual funds or through intermediaries," he said.
SEBI chairman, M Damodaran, sent out the same cautionary message. He said the regulator was keeping vigil.
"We were not less vigilant at 9900 or will be more vigilant at 10,100. Vigilance is a continuing process and the Sensex depends on who is buying and who is selling," said Damodaran.
Big numbers, both for Dalal Street and for the economy. But the Finance Minister and the SEBI chief is sending out a signal to be fiscally prudent.
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