Left will make difficult for price hike to go through

CNBC-TV18s Executive Editor, Udayan Mukherjee – It is better that decision on fuel price hike come this week otherwise it will be like a cry wolf situation. We thought it might come last week and this weekend but it never did. My sense is that Government is not going to find it easy to push this one through because the Left is sort of sticking its back up and saying we are not going to let this pass so easily.
 
In the past they have been making protests but this time because of the political situation which is quite sticky and the Congress which is at bit of a disadvantage, I think the Left will make it quite difficult for the price hike to go through.
 
I am watching with great interest on how the stock market will react to with what the quantum of the hike is whenever it comes through. Because one could read it both ways; there will be relief rallies on the oil marketing companies but it will be important what the stock market thinks is a bigger evil at this point in time.
 
Is it inflation? Because it will stoke inflation if oil prices go up or is it fiscal deficit because duty cuts will hit the fiscal deficit quite a bit. So from a stock market perspective the oil price hike cannot be a positive take away. It will stoke inflation; the duty cuts will worsen the fiscal situation and the stock market is also worried whether there could be something for the private companies because last week stocks like Reliance, Essar came off due to fear of some burden being placed on them.
 
It will be one of the deciders this week for sure but I am not clear on what the contours would be and whether the Left parties would let the oil price hike go through.