It’s been a tumultuous last few weeks; one could say. The week ahead is cut short by Christmas, and the New Year is awaiting – and amidst a two-year low for crude oil and commodity prices dropping everywhere as China slows down its import/export juggernaut, it’s difficult to predict exactly where things will be going over the coming weeks.
But one thing may be sure – there will be more political bickering between Congress and the BJP.
Markets Close on Friday over Christmas
“We expect the market to be volatile in the near term due to domestic cues amid the prevailing uncertainty over the passage of the GST,” said Vinod Nair, the head of Fundamental Research at BNP Paribas’ Geojit branch while speaking to the media.
That was a particular disappointment to some, especially the Bharatiya Janata Party-led government which has been vying to pass the bill.
2015 Will Go by Without GST Resolution
As reported by Money Bhaskar, and other sources of business news in Hindi, the winter session of Parliament ended last Thursday with no resolution on the awaited goods and services tax bill, which the opposition insisted should have specific changes implemented.
There were discrepancies in productivity between the Lok Sabha and the Rajya Sabha, as well – while the Lok Sabha managed to pass thirteen bills over the month, the Rajya Sabha faced the overthrowing of the Arunachal Pradesh CM, Arun Jaitley’s role in the DDCA scam, and the opposition president Sonia Gandhi and her son Rahul Gandhi being called to the National Herald case.
While the Lok Sabha clocked 102 percent productivity during its winter session, the upper house clocked in 50 percent productivity.
GST Public Petition Signed
This is of great concern to India, especially economically. The goods and services tax bill were addressed directly by over 50,000 people, who signed a petition on the petition website Change.org titled “Universal Appeal to Support GST”. The petition calls the delay of the bill a matter of great concern and was signed by major industrialists, drawing in the support of several figures such as Deepak Parekh, HDFC Chairman; Ajay Srinivasan, CEO of Aditya Birla Group Financial Services; and others.
“This is a historic opportunity for India to implement a game-changing tax reform. GST is India’s most significant tax transformation in decades,” the petition begins. “At this point of time, it is imperative to move forward with GST. It is the need of the hour to pass the Bill and implement GST without any further delay,” the petition further stated. The point of the GST bill is to lower the country’s tax rate, improve the ease of doing business, substantially boost India’s GDP and make tax compliance easier.
Commodity Markets Continue to Drop, but Oil Rises
While the greenback signalled strength after a recent Fed hike that subsequently sent the value of gold into remission, the US is beginning to experience a shortage of local oil and gas supplies, which is raising the price of crude oil according to Nasdaq, as the consumer of 20 percent of the world’s oil may help bring the price of a barrel – and other commodities – up again. Nevertheless, the situation is too volatile to be predictable.