The markets gained on four of five trading days last week, yet managed a mere 1% plus gains. Losses on Wednesday knocked of the gains of more than the first two days and then we saw recovery on the last two days. The BSESENSEX gained 1.01% at 25,869.49 points and NIFTY gained 1.21% at 7,856.55 points. The previous week saw the SENSEX record a intra week low at 25,451 and then make a higher low at 25453. Similarly on the NIFTY these were at 7714 and 7725. This could be a pointer to some sort of a shorter time bounce.
The government seems to be going at a fast pace ever since the loss of Bihar happened. First it was FDI, then it was stalled projects being cleared and started and now the pay commission which would release Rs ONE LAC CRORES per annum into the system. This would kick start the economy and lead to higher consumption, something most needed currently.
It appears Rahul Gandhi after the piggyback ride and success in Bihar is suddenly trying to improve his image globally. He recently has been meeting FII’s and other investors. One is not sure as to what was discussed but very clearly with the obstructionist attitude and approach seen last session, things should be better this time around. Further his anointment as Party President is imminent and as the numero uno he certainly would have to behave more pragmatically. One only hopes that wisdom finally dawns on the politicians of this country.
The winter session of Parliament begins on Thursday the 26th of November, the same day as futures for November expire. The current series of futures is at 7,856.55 points, lower by 255.20 points or 3.15% compared to October expiry of 8,111.75 points. Bears have an upper hand and with 67 bills pending in parliament the government has its hands full. If the opposition decides to debate issues rather than create obstructions, a lot can be achieved. The market would clearly keep its eye on the events unfolding in parliament.
It is now becoming increasingly clear that the FED would raise rates in the December meeting and this saw the Dow Jones and global markets recovering. The current stimulus is on now for over seven years and if the US economy is gaining, it’s high time that interest rates moved to reality. The Dow Jones gained 3.35% to close at 17,823 points.
In primary markets news shares of S H Kelkar and Company Limited listed during the week. The shares which were issued at Rs 180 closed at Rs 214.90, a gain of Rs 34.90 or 19.38%. Of the three issues which have listed over the last three weeks, shares of just Coffeee Day Enterprises have done badly. The shares issued at Rs 328 are trading below Rs 260, clearly proving the point that valuations were unjustified. With a strong pipeline of issues, one hopes that pricing issue is resolved by promoters and merchant bankers together.
SEBI has notified E-IPO with effect from 1st Jan 2016. This effectively means that all applications would be with ASBA and the system of cheques would be completely done away with. While the principle is welcome, one is not sure whether the systems are in place or not. In any case the sufferers of the new system would be retail investors, who in any case do not figure in the list of priorities for SEBI.
Interesting week ahead where markets would toe the line taken by parliament.
