Markets seem to be going nowhere and lost ground for the second consecutive week. The BSESENSEX and NIFTY were down an identical 1.48%. The broader markets lost a little less and almost all sectoral indices were in the negative. The markets are in a volatile mode and seem to be alternating between gains and losses on a daily basis.

The action seems to be in the primary market where one IPO completed its subscription and another extended the issue on not being subscribed. In the current week we would see two listings on Monday and Tuesday and both these issues would generate handsome returns for lucky investors. There are likely to be some more issues opening towards the end of the month.

The failure of Parag to get subscribed after raising Rs 343 crs would raise many eyebrows. The company needed a further Rs 240 crs from QIB’s and managed a mere Rs 120 crs. The issue has been extended and would now close on Wednesday the 11^th of May. The price band too has been revised from Rs 220-227 to Rs 215-227. To know more read the article on Parag on the website.

ICICI had made huge provisions for potential losses from deteriorating asset quality and it would be interesting to see what PSU bands do this week when they would have to declare results. If the AQR (asset quality review) is anything to go by, the worst is more or less behind us and things should improve going forward in a quarter or thereabout.

A lot seems to be happening in parliament and the tension is clear. The good thing is that there is some work happening. Further clarity will emerge once the floor test in Uttrakhand is over. The last round of voting would be over by the end of the week and on 19^th May the results for the five states would be declared. Statistically speaking the ruling party has virtually no seats in the states going to polls but they have a lot at stake particularly in Assam. The outcome of elections may act as a trigger to the market. The most awaited event however continues to be the onset of monsoon over Kerala. The beginning of the rain in Kerala would bring cheer to people all around particularly the markets where a lot hinges on this monsoon.

Markets would continue to be choppy and see two sided movements. If you have the conviction go long and hold on with adequate stop losses.