Markets on 17th Feb

Equity and debt markets are behaving strangely. Many conflicting signals:

Vote on account budget did not do anything, equity market was disappointed. But why.. vote on account is not supposed to do anything big.. so build up of expectation was anyway wrong. my view is that market fell because of global factors..

Bigger issue is in debt.. Governments are all over the world are taking fiscal measures to prop up growth.. Obviously this is going to happen through borrowing from some body - private investors, market or straight from the central bank.. Typically, it is through the auction where investors bid.. now when the government is doing the same, the concern in India is of Fiscal deficit running high.. One thing has to happen - either higher fiscal deficit or lower spending. There are questions about where to spend and that is debatable.. in a democratic set up and in an election year, social set up will take priority