Dear Members,
A small part of the 3 February Indian letter; I hope it will help you.
On Saturday, the finance minister released the budget; as expected, there were no significant surprises. However, there is good news for earners as the tax bracket is increasing.
The most important takeaway from the budget was the focus on controlling the fiscal deficit while promoting growth. Defense and infrastructure spending have reached their highest levels. The budget broadly reflects recent priorities, with a balanced approach targeting long-term growth, modernization of infrastructure, and digitalization. The government expects growth and job creation from capital expenditure on roads, railways, airports, ports, and urban/rural development.
The goal of achieving seven to eight percent GDP growth has been abandoned, and neither Prime Minister Modi nor the Finance Minister is discussing it.
I believe that the critical areas will be the lower-middle-class people in India, and job creation among them should be a top priority. Additionally, the weakness in the rupee and inflation are two key factors that need to be monitored.
On the other hand, China’s support for entrepreneurs in building new technology like AI and the semiconductor industry puts them neck-and-neck with the USA. India's lack of support from the government for young entrepreneurs in the race for future technology is the biggest disappointment. The government should allocate funds to build partnerships with young entrepreneurs to advance in a new era. Leaders from all parties are focusing too much on religion and the caste system for voting banks rather than looking into what the brightest minds in the world are doing and how to compete with the world in a new era.
In China and the USA, the brightest minds are busy building the future and are not interested in religious topics. They believe in good causes and bring changes to society by introducing technology. They also don’t look into the past, what happened, and who made what mistakes; they look into making the future bright. Modi is a dynamic leader, but he also keeps digging into the past and talking about errors leaders made in the past rather than looking into the future. Even the BJP and its leaders must have made many errors in the past, so they should bury the past and focus on the future.
In India, a massive number of people spend time on social media talking about entertainment and religion, which are top topics, while education and careers are at the bottom at the tenth, which is sad. I don’t see India becoming even the second most powerful country in the world if the country is busy focusing on religion. I am Hindu, and it is a very personal subject for me. I am teaching my children how to help the needy and become good human beings rather than teaching them to hate other communities and religious groups. That will only seed hate in my children, and harmony will disappear.
If Modi is a genuinely spiritual person, then he should unite the country and encourage everyone, regardless of caste and religion, to participate in the country's progress. Look at Dubai; all religious people live in harmony because the authorities don’t talk about religions or create hate by talking negatively about any religious group. The UAE is rising; it is a safe place to live, and everyone is becoming part of prosperity regardless of their caste and religion. Many Islamic countries are in war, internal conflict, poverty, or falling economically. Please teach children to become good human beings rather than radicalize them.
After remaining bullish for four years (from 7888 to 26178), for the first time in August 2024, we recommended shorting the Nifty at 26178. We targeted 22800, which was achieved. Nifty won’t adopt a bullish trend until it closes above the 23300 level for three days, so this is an important prediction. The maximum higher side is 23900, so remember this level.
We became very bullish about China in January 2025, and Chinese stocks, ADRs, and YINN gained handsome value. I am very concerned about the Indian market's trend if it starts trading below 22800. You must read our book “2025 Financial Predictions,” or you can subscribe to the Indian Daily Letter.
https://www.mahendraprophecy.com/2025-financial-predictions-book.php
https://www.mahendraprophecy.com/indian-market-subscription.php
Thanks & God Bless
Mahendra Sharma