India's flawed Foreign Policies

Right since independence, India's foreign policies have been based on whims and fancies of few individuals. After Independence, it was Nehru who was ruling the roost. I strongly condemn his non - aligned movement. Had we aligned with US then, we would have reaped economic benefits. Technological advancement would have been much faster. India could have sought US help in Infrastructure development. Had the infrastructure development that begun in the late nineties started in early fifties with US support, things would have been different. The entire economic scenario would have changed.

Now again, we are treading the wrong path on the Srilankan Issue. Indira Gandhi, though criticized by and large for her arrogance, did a commendable job on the Srilankan Issue. It was she who propelled the separate Tamil Ealam cause by training the Tamil fighters. She was strategic and wanted to rule the Indian Ocean trade by keeping the Trincomalle Harbour in Lanka under her control. Trincomalle is a very strategic harbour with respect to both trade and defence. Soon after her demise, India's foreign policy fell into wrong hands of JN Dixit and MK Narayan. These people from the very beginning fumbled on the Lankan issue. It was they who wrongly guided Rajiv Gandhi into the IPKF accord which proved very costly for both Rajiv and India. Again now, when India needs to be strategic on the Lankan issue, India is again goofing up!!

The Chinese and the Pakistanis are supporting the Lankan army to the hilt. India too is supporting the Lankans. If LTTE is vanquished, it's India which is going to suffer the most!! How?

1.Pakistan will start perpetrating Islamic Terrorism from South. Already, we are facing the problem of infiltrations in our eastern (Bangladesh) and western frontier. We will be facing similar problem down south.

2.In all probability, China will set up a naval base in Srilanka and pose threat to India.

Why is MK Narayan not understanding this?

Well, his love for Sinhalese and hatred for Tamilians is well known!!

Tips to Retail Investors

Retail Investors!! My sincere appeal - Do not Panic!! Panic Selling will be of no use. It is time for you to sit back, track the stocks closely, observe the movements carefully and make money out of your observations. And if u have cash now, you are the king!! Indian markets are fundamentally attractive and alluring. It might take another six months for the markets to start moving up again.

2010 would be a very good year for Indian Markets. The macroeconomic environment is likely to change. India's oil bill is bound to go down as domestic oil production from KG basin would change the entire scenario. This Oil would reduce India's oil bill by a whopping 50%. This means less trade deficit and reduction in exchange rate volatility. The results of world wide bailouts would be felt in another few months.

BSE SENSEX would be range bound (9000 - 12000) for another six months. It's high time retail investors keep their cool, exploit this range and make cool money.

Few Tips:

1.Invest in blue chips for the time being

2.Follow a systematic and phased investment strategy egs: Invest 20% at current levels. Invest another 20% at slightly lower levels of 9500. Invest another 40 % when market stabilizes around 12500.

3.Always try to maintain a cash position of at least 10% to pick up value stocks then and there

Follow this strategy and you will get wonderful returns over the next 12- 18 months.