Markets in a bind…Lokpal logjam continues

The penalty that good men pay for not being interested in politics is to be governed by men worse than themselves. – Plato.

Governance (or rather lack of it) has been an issue with UPA II. The tug-of-war on the Lokpal Bill comes in the wake of a series of scams. But, things appear to be moving as far as talks between the Government and Team Anna is concerned. The PM has requested Anna Hazare to end his public fast. Lot more action is expected on this front today, including an all-party meeting. Negotiations will continue to break the gridlock.



Coming to the markets, the key indices may open subdued owing to weakness in Asia. Barring China, most regional indices are in the red. The US markets closed with strong gains though, and European stocks too advanced.

There is a chance of some pull-back later in the session. A short covering led rally ahead of Thursday’s F&O expiry is not ruled out. But, the undertone remains nervous due to a combination of global and local problems.

A bullish confirmation of breakout would only happen if the Nifty ends above 4976; till then sustainability of any rise will be at risk.

Federal Reserve chairman Ben S. Bernanke's speech on Friday will be on investors' radar. For India, next week's Q1 GDP report will be an important event apart from developments in New Delhi.

India Infoline Investment Services' NCDs to list today. The public issue of NCDs of India Infoline Investment Services Limited (IIISL) consisting of a base issue of Rs. 375 cr, with an option to retain over-subscription upto Rs. 375 cr, aggregating upto a total of Rs. 750 cr, which closed on August 8, 2011 was oversubscribed and received over 34,000 applications from the public.