Straight from the Specialists
(The views expressed in this column are the author’s own and do not represent those of Reuters)
Indian markets were in a narrow Nifty band of 5550-5650 last week but volatility kept market participants on tenterhooks.
The winter session of parliament, as expected, opened with retail FDI being opposed by the Bharatiya Janata Party and other opposition parties. The logjam is expected to continue for some time as the Congress-led government seemed too strong-willed to be cowed by the threat to the passage of several financial bills.
Unless the government is able to convince its allies and some fringe parties, the FDI vote could shake investor confidence. The 2010 winter session of parliament was the worst in terms of productivity, followed by this year’s monsoon session. It remains to be seen whether the ongoing session also enters the hall of shame. An all-party meeting on Monday should provide further clues.