The year 2014 has ended with returns from the stock market being decent from all standards. The benchmark indices saw the BSESENSEX and NIFTY return about 30% while the BSESMALLCAP outperformed gaining 69.24%. The BSEMIDCAP gained 54.69%. The best performing sectoral gainer was BSECONDUR up 66.18% closely followed by BSEBANKEX up 65.04%.
FII’s have bought Rs 98,177.90 crs worth of equity in the calendar year 2014 while domestic institutions were buyers of equity worth Rs 23,558 crs. The government intends to begin divestment in all earnest from the middle of January post Vibrant Gujrat. Currently after the two day bankers conclave held in Pune where RBI governor, FM and PM along with the ministry and all key officials of banks met, three things have emerged as key takeaways. The government needs to dilute its equity and allow banks to be autonomous in taking decisions. Secondly the present level of NPA’s is just too high and they need to be brought down. Thirdly the government has assured banks that there would be no interference in the day to day functioning of banks whatsoever.
Technically the market has given a break out on Friday and should be good for some further upward move. With shorts eliminated on Friday’s upsurge we need news flow to keep the momentum going. Currently volumes were abysmally low on FII’s being on vacation. With them returning on Monday onwards, volumes should improve significantly and help market find their trend and direction.
Tough times for the market with next couple of days being crucial. There could be some selling pressure from quarters who expected announcement from Bankers conclave. In any case markets are well placed and seem to have taken all in their stride. The entire nation is waiting for bated breath to see what PM Modi does at Vibrant Gujrat where the who’s who of the world business community would be attending coming weekend.
Hold your kites and wait for the right wind to release them.