Testing times continue

Enduring setbacks while maintaining the ability to show others the way to go forward is a true test of leadership. - Nitin Nohria.

Leadership deficit has been one of the major issues plaguing the world in what has been a tumultuous year. India has been one of the victims of this disturbing trend. UPA II has failed to capitalise on its resounding electoral success. If anything, things have got worse and there are no signs of improvement as yet. Hopefully, Dr. Manmohan Singh & Co. will deliver better returns in 2012.



The start today is likely to be muted once again, with most global markets not budging much amid thin trading volumes. Indian markets are expected to be slightly choppy going into Thursday’s F&O expiry. On the whole, things should be quiet. Staying away from the market action for few days won’t do you much harm. Take a fresh guard in 2012.

The Lok Sabha has approved the Lokpal Bill with few changes. But, the UPA lacks numbers to get it cleared in the Rajya Sabha. Anna Hazare’s three-day fast has received a lukewarm response so far. His health has worsened. So, chances are he may be asked to call off the agitation. In short, the political drama over the Lokpal Bill will continue.

FIIs were net buyers of Rs 2.14bn (provisional) in the cash segment on Tuesday, according to NSE data. The domestic institutional investors (DIIs) were net sellers of Rs 952.9mn on the same day.

The foreign funds were net buyers of Rs 3.87bn (provisional) in the F&O segment, NSE data shows.

FIIs were net buyers at ~Rs 1.54bn in the cash segment on Monday, according to SEBI web site.

Renewed selling pressure was witnessed on Tuesday with the NSE Nifty testing the resistance zone around 4800 and closing was near 4750 levels. A 62% retracement for the entire upmove, beginning from 4530 points to near term support at 4635. Fresh buying interest is likely to emerge around this level. The outlook for the market remains cautious as long as the Nifty trades below 4810.