In a note, Credit Suisee has sounded very pessimistic about the Indian Market due to deteriorating Political Equations. The basic argument
for reforms in the next few weeks/months is that if the next elections are in Apr/May 2014, the government can afford tough measures now,
and then turn populist well in time for the elections.
However, political moves over the past month have sharply increased the chances of an early election. Thus, while the next general elections may indeed be only in 2014, the government can no longer safely assume that. This is because the two parties whose support is essential: the Mamata Banerjee led Trinamool Congress and the Mulayam Singh Yadav led Samajwadi Party - have both the most to gain from early elections, and have already started preparing candidate lists.
NOTE - I'm not quite sure about how far this is TRUE as Reciprocal Support from SP to Pranab Presidency and a Financial Package to UP State was in the offing.
