Arjun Parthasarathy has spent 20 years in the financial markets, having worked with Indian and multinational organisations. His last job was as head of fixed income at a mutual fund. An MBA from the University of Hull, he has managed portfolios independently and is currently the editor of www.investorsareidiots.com . The website is for investors who want to invest in the right financial products at the right time.
On an overall basis, despite GDP growth and rise in value of asset prices, the UPA government performance has been well below par on all counts. Markets want a government that could improve the overall performance of the economy.
The correct way to answer the question "should one be invested in equities?" is to ask two more questions that are what is the risk of being invested in equities and what is the risk of not being invested in equities going into calendar year 2014.
The banking system in India is well regulated and banks' reporting standards, reserve ratios and capital adequacy hold the system strong even in the face of adversities such as the global financial market collapse in 2007-08.
The rupee has been hit by inflation and current account deficit that touched record highs of 4.8 percent of GDP in 2012-13. The markets have not favoured the rupee despite the interest rate differentials between India, the US and Eurozone.