Government must deliver to the raised expectations

The clear majority of the Congress led UPA government has created a stable government for the first time since 1996. The scenario of a government that doesn’t have to worry about appeasing the leftist parties or alliance partners has created a bullish sentiment in the market. In a report the consultancy firm IIFL states that investors would now expect a faster pace of market friendly reforms. Amongst these reforms would be bills like the insurance bill to increase the foreign holidng to 49% and the pension fund bill to set up a pensions regulatory body. IDFC India research added that the government should take advantage of its strong position and go ahead with its disinvestment programm.