Parliament session to dictate market momentum next week

Business

oi-Sunil

By Sunil Fernandes

Published: Saturday, November 24, 2012, 10:53 [IST]

The two days that parliament was in session, at best can be described as shameful and unruly. If the present trend persists and crucial economic bills, particularly those related to FDI are not passed, expect the markets to come crashing down.

Among the crucial bills that remaining pending that needs parliament approval is the insurance laws ammendment bill, which will help increase FDI in the insurance sector to 49%.

The Pension bill is also an important bills that seeks to bring FDI in the pension sector to 26%. The Banking Laws Amendments Bills also needs to be passed, provided if the parliament is allowed to transact business.

Clearly, the above bills are crucial and if parliament is disrupted and if the bills are not passed, it could lead to a sharp reaction in the stock markets.

It could also send the rupee crashing, which could have grave consequences for the economy and for the corporate sector.

Apart from the parliament session, the markets are expected to focus on the GDP numbers, which is to be announced on November 30. The broad consensus is that the GDP would come in at around 5.5%.

Markets would also track developments internationally, particularly those related to Greece and the fiscal cliff in the US.

Last week markets rallied across the globe on hopes that the fiscal cliff in the US was closer to being resolved. A continuing deadlock amongst Congressmen in the US, could see markets reacting negatively across the globe and in India.

It's clearly going to be a volatile week for markets going ahead.

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