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.
