MODI 100 DAS RATING 8.5 OUT OF 10

Everyone on the street is now busy publishing a quarter audit of Narendra Modi’s new government. Benchmark indices like the BSE Sensex have touched a new peak. Macquarie Securities, an Australian securities firm, goes to give an average 8.5 out of 10 points to the government.

Here are pointers that explain parameter used by the stock market to evaluate the government performance:

Economics—The government is steadily moving towards taking charge of the economy. The overall emphasis on the economic growth and ease of doing business has impressed Macquarie. A section of investors have expressed a concern that the big bang economic reforms vision has yet to arrive. “While we agree that articulation of big bang reform is yet to come, we are seeing an urgent focus on policy execution, particularly focused on clearing stalled projects and in attempting to simplify and streamline government processes,” Deutsche Bank said in a note. Morgan Stanley, another global bank believes that bringing in stability to government finances and falling consumer price inflation are key to faster economic growth. Macquarie Bank has given a rating of 8 out of 10 to the Modi government on economics.

Governance—The government emphasis on improving productivity has found favour. With the prime minister spending more time in the office and getting ministers to come up with action plans, the bureaucracy is also expected to improve the functioning of the government. “We believe this in itself will help to fasten the decision making process and improve the business sentiment,” Morgan Stanley, a global bank said in a note. A section believes that the downsizing of the cabinet, number of posts and departments and induction of younger ministers in important ministeries are positive steps. Macquarie rates it 8 out of 10 on governance.

Parliamentary productivity: The new Lok Sabha, it has passed 16 bills, the highest-ever in two sessions. “During the second session of the newly constituted Lok Sabha, the Parliament has worked for 27 sittings. This is the highest number of sittings for the second session for the last four Lok Sabhas,” Motilal Oswal Secuirities observed in a note. The street is though disappointed with non-clearance of the Insurance Bill which sought to raise FDI limit to 49% in Rajya Sabha. “This has raised doubts about other legislative changes,” observed Macquarie. The BJP does not have a majority in the upper house of the Parliament. The government got 8 out of 10 on this count from Macquarie.