Starting trouble!

"I never had a policy; I have just tried to do my very best each and every day." - Abraham Lincoln.

The government is trying to do its best these days. UPA II has been besieged by a spate of corruption cases over the past several months. This has left crucial policy making in a limbo. Lately, the Centre has been able to reverse the drift and has announced some promising measures. The new Land Acquisition Bill is one of them. The arrest of mining barons – the Reddy brothers – is seen as another.




That said, there is still plenty of work left to be done. Inflation is uncomfortably high, interest rates are elevated, global picture is getting uglier and investments are not forthcoming. Also, there are fears of fiscal deficit overshooting FY12 estimate. Let’s hope things on the macro-economic front don’t get worse from here on.

The start is likely to be a tad subdued due to the big crash overnight in European markets. But few Asian markets like China have recovered from intraday lows. US markets were closed but may remain under pressure today due to ongoing economic woes.

India has shown commendable resilience as FII inflows have picked up. Inflation numbers on Sept. 14 and the RBI meet on Sept. 16 are among the few important near-term events to keep on one’s radar apart from daily global developments.

The Indian equities proved to be resilient on Monday with the NSE Nifty holding on to the 5000 level despite very weak global cues. The short term trading range for the Nifty is seen at 4910-5150.

FIIs were net buyers of Rs 1.33bn in the cash segment on Monday, according to the provisional NSE data. The domestic institutional institutions (DIIs) were net sellers at Rs 1.47bn on the same day. FIIs were net sellers of Rs 3.52bn (provisional) in the F&O segment.

The foreign funds were net buyers of Rs 11.78bn in the cash segment on Friday, as per SEBI data. Mutual Funds were net sellers at Rs 2.68bn on the same day.

Global Data Watch: Reserve Bank of Australia monetary policy statement, Euro-zone 2nd-quarter GDP, German factory orders, US non-manufacturing data and Speech by Fed's President of the Minneapolis.