The markets: Bated breath

When things get out of joint, as well they might, for instance, if the International Monetary Fund (IMF) loan doesn't come through, how should one expect the stock market to react? It's a good question and one that many a stock exchange buff must be asking, waiting with bated breath for a wisp of white smoke from the IMF chimneys in Washington.

The Government has not explained why it wants such a big loan, so it is really difficult to guess how the market will be affected if it doesn't come through but, all things considered, it doesn't look as if it would really make much of a difference. The money is meant to tide the Government over a possible bad patch in the event of a disastrous monsoon or an exceptional rise in oil prices. Both are, however, unlikely in the near future.