The
UPA regime seems to running out of ideas. Parliament comes to a
standstill. Anna Hazare has refused to leave Tihar jail even though he
has been released by the authorities. In short, the UPA vs. Anna battle
could be a protracted affair. The demand for a strong anti-graft bill
seems to be finding popular backing for now.
As
for the market, the rise in political temperature in the capital may
not have a major impact on sentiment. What could affect the mood is
lingering worries over the deteriorating external environment,
particularly in the US and the eurozone.
The
outcome of a meeting between German and French leaders has not gone
down too well with the markets. Data showing stagnation in Germany also
soured the sentiment in European markets. US stocks pulled back after a
three-session rally. Asian markets are mixed.
Back
home, inflation slowed in July, but a rate hike is still likely on Sept
16. Nifty is currently trading near the psychological support of 5000
and a closing below it could take it down to 4750-4800 in the near term.
