The markets continued to remain volatile and move in the broad range of 7750 and 7980 on the NIFTY. The low made this week was 7,735 and the markets are in danger of having a breakdown if they don’t recover and move up. The May series expires this Thursday and currently the same is down 97.55 points or 1.24%, with the bears enjoying an upper hand.
SBI is to declare results on Friday and being the largest bank it has the potential of being a game changer as far as NPA’s are concerned either way for the markets. In the current quarter two PSU banks so far have produced a shocker of a resultin Bank of Baroda and Punjab National Bank. All banks have not yet declared results and there could be more shocks round the corner.
Results to the five states that went to polls were announced and there was a change in two of the five states with the Congress losing both the states. They lost Kerala to the Left and Assam to BJP. They managed to improve their seat tally in West Bengal at the cost of their “JOD” partner the Left who suffered significantly. The incumbent Mamta Banerjee not only improved her position but has a 2/3rd majority. Tamil Nadu returned the sitting CM Jayalalitha with a reduced majority. In Puducherry Congress has come to power.
The key takeaway from this elections for the ruling NDA is that West Bengal Chief Minister has stated that her party would support the GST bill giving the passing of that a shot in the arm. Readers would recall that FM has immediately after the conclusion of the budget session stated that they would have a vote on the GST bill in the monsoon session. It appears with the Congress losing two states, one of which is to the BJP, things are likely to change with Congress being on the back seat.
The country needs rain and everybody is waiting for the same. There have been storms in the meanwhile affecting our neighbours Bangladesh and Sri Lanka and parts of West Bengal and Odisha which had rainfall.
In primary market news shares pf Parag Milk Foods Limited listed on Thursday and recorded decent gains. The company had failed to garner subscription from QIB’s and did so after a reduction in price. The issue was priced at Rs 215 and shares closed the week at Rs 244.45 a gain of 13.70%. So far so good but the gains have to sustain and the financial performance continue to register double digit growth.
Key drivers for the week would be May series expiry and results from corporate India.
