The Congress chairperson talked tough and its curtains for the DMK drama. If only some toughness would come on the reform front, the market would have been happier. For now, the two coalition partners have amicably settled the sticky issue of seat-sharing for the TN assembly polls. All eyes are now on Congress’ negotiations with the Trinamool Congress. We can only hope that the so-called political compulsions in the run up to the state polls won’t hamper policy-making any further.
The markets recovered from Monday’s fall on some hope of political stability. We are set for a positive start owing to better global cues and some softening in crude oil. The political unrest in the Middle-East and its neighbourhood has been a concern for a while now. But markets haven’t quite collapsed. Any relief on this front will lift equities and boost risk tolerance yet again.
Other near-term events to watch out for will be the IIP and inflation figures, apart from the mid-quarter RBI review. The Nifty needs to stay above 5520 for a couple of trading sessions in order to make the pullback sustainable.
