The Raging Bull & GST

“Only the really young are fearless, have the optimism, the romanticism to take unimaginable risks” — Olivia Wilde

In UK, it’s the old who took the risk by embracing Brexit. They did the unimaginable and are now worried about its aftermath. The British are already confused, divided and in two minds about Brexit. In India, we had Rexit, or Raghuram Rajan’s exit, which also created an unprecedented ripple.

Indian shares have rallied despite the vote for Brexit, buoyed by the domestic economy and anticipations of an easier monetary policy. India is not entirely immune to global upheavals, though. Senior editorial colleague and markets expert Clifford Alvarez takes stock of where the Indian stock markets are headed. This issue’s cover story predicts that in three years the Sensex will be at 50,000 and enlists reasons for this bullishness. The package argues that the market rally would be fuelled by a slow rise in public spends and increase in GDP. The financial sector and a galloping rate of consumption are leading the rally now, amidst a slow recovery in corporate earnings and return on equity (ROE).

Other factors that could bolster the markets include a clean-up of the banking sector and weakening of the US dollar, which could spur fund flows into equity markets. Domestic investors too are increasing their allocation to equities. But as Alvares cautions, this rally could easily fizzle in the event of a rate hike by the US Federal Reserve, upheaval in global markets and China and a slower than expected recovery of Indian corporate profits. The cover story also tells you which sectors to invest in and which to avoid. Hopefully, you will benefit from the overall insight into the markets.

The Goods and Services Tax (GST) Bill’s passage looks to be a done deal. Senior associate editor Suman K. Jha decodes GST and the road forward through extensive and candid conversations with minister of state for finance Jayant Sinha (before the 6 July Cabinet reshuffle which saw him being given the civil aviation portfolio), his father and former Union finance minister Yashwant Sinha (for his independent views) and Gujarat finance minister Saurabh patel, as well through a deep-dive into the politics behind the opposition to the GST Bill. We also bring you a comprehensive analysis of the impact the GST regime would have on various states, sectors, industries as well as the common man.

Deputy editor Sutanu Guru and special correspondent Monica Behura look at the impact the new FDI policy would have on the economy as well as the sectors concerned. Senior editor Ashish Sinha takes you on a tour of the Indian luxury car market, which however continues to be very small compared to China and even Brazil. Ahead of the celebrations marking 25 years of liberalisation this July, BW brings you exclusive excerpts from Vinay Sitapathi’s book, Half Lion, based on P.V. Narasimha Rao’s s life. Subhanu Saxena, Global CEO of Cipla, looks at Brexit from both a global perspective and the Indian standpoint.

Marketing, advertising and media editor Noor Fathima Warsia has put together a special package on Cannes Lions. Arnab Goswami, whose interview with Prime Minister Modi on 27 June on Times Now elicited much criticism in the media, silences his critics by taking them on in an exclusive column this issue. We don’t often have so much to offer on a single plate and we hope you enjoy the fare.