Does the advance tax data show that economic recovery will be stable?

Yes your quite righly so but my view is little bit diffrent from  U becose of that we don't forget that behind this recovery there is a big stimulus which played a key role .... also remember that our inflation rate is going upwards day by day ... this is big cause of worry and under the pressure of this if govt. decide hick in bank rates this could be start down trends ... so before making our final comment on this we have to look the fact which is behind  it and ....also govt. is taking back their stimulus from Industries .... ....I want so say that we have to look what will happen when govt. decide to withdraw all these .

Esha

I agree that paying higher advance tax by corporates is a sign of economic recovery and that too in the fourth quarter when the whole years profit is taken into consideration.I am not sure about the stability factor as the corporates pushes the sales and income to the maximum extent in the fourth quarter to boost their profits and strengthen their balance sheets.

I am in agreement with the Views expressed by Esha and Darshil as there is no denial to the statement that “Market is recovering from last years economic downturn” rather I personally feel that the slow down in Indian economy was just a impact of Global meltdown; as Globalization has given us rapid growth, we could not eliminate it’s demerits too. Otherwise I do not see a reason in Indian Economy to be trapped in an Economic slowdown Phase. It seems to be more notional or may be a impact of liquidity crunch due to withdrawal by FII’s in the crises period. The recovery is well indicated on Nifty / Sensex too which have almost doubled from last years low.

But at the same time I am also in agreement of Mr Kausari’s statement that this only can not be a parameter to judge the recovery, other considerable factors need to be taken in consideration too. And Mr. Khairnar, you are correct in saying that before melt down too advance taxes were paid, but then there was no collapse in India, global meltdown impacted the sentiment and liquidity for a while and corporates are back on track with lessons of meltdown ( Sub Prime etc.) to play more safe further.

Thus I believe the recovery is Stable...

Yes I think, that seeing to the figures of Advance tax of the Indian corporates like Reliance paying 713 crores of Advance tax and Grasim 216 crores it seems that atleast Indian economy is on a drive which shows the recovery from the dooms day. Whatever the global conditions maybe the Indian players have a good hold on the world market which doesnot have any impact of the global economic slowdown and the profits are increasing Year on year basis.