Why you should worry about the latest market crash

At a point when the Sensex has fallen by 5,000 points — that’s by 25 per cent — from over 20,000 in early January to 15,000 today, why should a 500 point fall make news? Because these 500 points bring out the first sentiments of investors: fear and greed.
History tells us that we’ve lost money in earlier falls, the greed years of the dot-com boom, for instance. Then, some of the tech shares that quoted at over Rs 1,000 could be picked up for a few paise. Many investors are still holding on to them, in physical form, waiting for them to rise to their previous levels — or at least to Rs 500 or thereabouts so that the investment can be salvaged.
The bad news is that that’s not going to happen in their lifetimes.

Opinion in Hindustan Times, June 09, 2008

The future lies in history

By raising the prices of diesel and petrol by Rs 3 and 5 per litre respectively and that of LPG by Rs 50 per cylinder, the UPA administration has shown rare courage. This is especially brave in these ominous times of political economy constraints. But beyond the petty politics of power-seeking and power-sharing lies one fact: the price Indians pay for petrol has no relationship with the usual demand-supply equilibrium under which any free economy operates. All developed economies pay more, few emerging economies pay less. Inflation, say political parties, will rise and wreak havoc on the household economics of the common man. There will be strikes by the Left; then by other parties; and, of course, criticism from the BJP.
It is coincidental that the price rise follows the the BJP’s electoral victory in Karnataka last week. Among the many reasons being cobbled up for the Congress loss is the rising inflation rate, which after yesterday’s oil price hike will go up by 0.5 percentage points. How much of this is a cause-effect relationship and which half is the effect leading up to ‘cause-seeking’, I’m not so sure. For, to stay afloat in this Age of the Sound-bite is not easy unless you have a short, snappy and easy-to-digest ‘analysis’ to offer. Hence the popular misconception that inflation was the prime reason for voters turning away from the Congress — and that this ‘morning’ will show the ‘day’ in other states like Madhya Pradesh, Chhatisgarh and Rajasthan.

Opinion in Hindustan Times, June 04, 2008

Eat the rich

Beyond falling profit margins, slowing industrial growth, high interest rates and voter uncertainty, there are two new beasts that high inflation, across the world, is unleashing — riots in poor countries and lifestyle changes in richer ones. Backed by a 39 per cent rise in prices over the past year, food riots erupted in countries as diverse as Egypt and Indonesia, Guinea and Mexico, Haiti and Uzbekistan, Mauritania and Yemen.
On the other side of the wealth divide, the rise in oil prices is going to change more than just diets; US citizens are going to see lifestyle changes. Under risk is the country’s suburban economy, where workers drive 100 miles to work on cheap gas. Will workplaces move to where the workers are or vice versa, will technology replace human interactions, these are questions companies and employees there are asking.

Opinion in Hindustan Times, May, 14, 2008

Can’t axe those roots

We may be Muslims, saab, but we cannot cut this peepal tree. His name is Rahim and his band of workers sound Muslim too. The carpenter --- Maulana saab. The painters --- Abdul and Ismail. The plumber --- Yaqub. I didn’t hire him because of who he was (or who he thinks he is) but because he’s a competent contractor. And among the many other jobs that a house needs, cutting the peepal tree on the terrace of our landlord’s apartment was one. The tree, like thousands on Delhi buildings and millions across north India, was a hazard to the building. My generally invisible neighbours brought it to my notice. The tree had to go. Period.

Opinion in The Indian Express, March 17, 2008

Oye boss!

How do you deal with a bad boss? That’s a question a 25-year-old asked me last week. The worst thing anyone — individuals, organisations, countries — can tolerate today is a bad boss. It impacts teams, creates bad blood, generates disharmony and tilts the balance against work in a work-life balance where life drives work and work influences life. It seriously impacts the organisation, though most leaders, in an either-or, tend to favour the bad boss on the cold assumption of premium replacement value, not realising that it is generals in corner cabins that have to be retired, not soldiers on streets getting business.

Opinion in The Indian Express, March 9, 2008

Meet India's 53 Forbes billionaires: 19 newcomers, 28 'self-made'

Meet Sameer Gehlaut, 34. Engineer from IIT-Delhi. Self-made entrepreneur who launched online brokerage Indiabulls in 2000, diversified into real estate, picked up high-end land in high-end auctions in Delhi and Mumbai. And, almost as a by-product, is India’s youngest billionaire, according to Forbes which released its list of 1,125 wealthiest people today.

Story in The Indian Express, March 07, 2008

Ny-lon-kong-mum

When controversy convulses Mumbai and its social tensions are seen to be politically sharpened, it becomes so easy to forget its proven capacity to survive. The city became a commercial centre in the 17th century when Gerald Aungier, the second governor of Mumbai, invited and attracted skilled and trading talent — Gujaratis, Parsis, Bohras, Jews, Banias. On August 8, 1672, while inaugurating the First British Court of Justice he told the court: “The inhabitants of this island consist of several nations and religions, like English, Portuguese and other Christians, Moores and Gentoos, but you, when you sit in this seat of justice and judgment, must look upon them with one single eye as I do, without distinction of nation or religion.”

Opinion in The Indian Express, February 14, 2008