Q: But do you think if these things happen, the Nifty can break past 4,700? Or if the budget is not powerful enough to give that thrust?

Jhunjhunwala: Maybe the budget can be a non-event because the kind of strength the markets are exhibiting, in my opinion, that surprised me also, so I think it will break through surely and of its not liked by the market, we could go and fill the gap of 3,700 also. There is a big gap from where we are now.

Q: So you think a 700 fall if the budget is lukewarm?

Jhunjhunwala: if the budget is very unpopular, then why not.

Q: You think that is a most highly likely outcome?

Prakash: There is a feeling of right or wrong developing against international investors that the stars are getting aligned for India in the sense that there is a general view that OECD economies are going to have very difficult two-three years and China may have a couple or two-three years, India is extremely well-positioned and everyone knows what has to be done and everyone is going to say the same thing, same five-six points in different ways. The budget has to give an impression to investors that this government would implement, everyone knows what needs to be done and there is no rocket science in this. But will they implement and if they can convince investors that they are serious and they want to implement on six-seven critical issues like GST etc. I think the market will do well if investors get a feeling that this is still an indecisive government and the budget is not as good, then that is a disaster.

Jhunjhunwala: I have one point, if you think of Dr. Manmohan Singh, what does that motivate? He is a very honest man they say, people also say the centre of power is not at 7 Racecourse Road, so he will also look back and think that I have been the Prime Minister of this country for the fife years and maybe for next two-three years, so that will drive him to do something and he knows what needs to be done and everyone knows.

The question is that how palatable he can make it to the political establishments and I personally think that if anyone can make it, that is him. So he can convince. So it may be a good budget or otherwise it could be very boring, we don’t know.

Q: On a scale of ten you were talking about rating influences, how much would you give the budget in deciding the trend of the markets and how much other global equity markets are doing from here.

Prakash: If you can convince investors that you are serious about implementing the things, then the budget is very important because that will convince investors that India is going to go back to 8% GDP growth, along if the world doesn’t collapse totally and the India can be very interesting country to invest in. if you leave the feeling back to investors that we are again back to indecisive of last five years, Manmohan Singh is not asserting himself, there are too much fractions within the Congress party and everything is up for debate, like the education bill, Kapil Sibal said something which is backtracking and hopefully this is a minor thing. So the budget is important from that and you got to give investors the clear message that we are in charge and control and we need and we know what things needs to be done and we will do it.

Jhunjhunwala: Investors come to invest in India if China goes soft and I am told China has broken through a very technical resistance, so if that’s the factor we will also play a role.