The markets which were on a roll received a momentary setback because of strictures passed by the honourable Supreme Court on coal block allocation from 1995. This affected a spate of companies from the metal, power and even finance companies related to infrastructure and power. The markets still made a new high and closed at virtually their best level. In the last 12 months the SENSEX is up 43% while the NIFTY is up 45%.
The GDP numbers released late on Friday for the April-Jun quarter was at 5.7% and these were the best numbers in the last nine quarters. The former FM Mr Chidambaram was quick to claim credit for the improvement in numbers and one is not sure for what he should be given credit or not, but the fact remains that these numbers are a huge positive.
The government has launched the biggest financial inclusion programme and as many as 1.5 cr people were enrolled in the Jan DhanYojana scheme launched last week. This is the world’s biggest financial inclusion programme of its kind and would go a long way in achieving the same provided the same is not misused.
August futures expired and the NIFTY gained 233 points or 3.02% to end at 7,954.35 points. This is the seventh consecutive monthly gain for the NIFTY.
The prime minister is on a tour of Japan and as the Chief Minister of Gujarat he enjoyed very cordial and special relations with that nation. One is sure that the same relationship would now be extended as he has become the Prime Minister. Already Varanasi has been selected to be converted into a smart city and if this ancient and holy city is converted into a smart city, one can be sure that huge political gains will be derived by the ruling party.
The week ahead will see a strong opening on Monday on the back of positive GDP numbers. Clarity from the Supreme Court on the coal issue is expected on the 1st of September and would go a long way in resolving the dispute of nations’ natural resources not being allocated in a fair and proper manner. Come what may clarity would emerge post the Supreme Court judgement and would be beneficial to the nation in the longer run.
All in all there would be enough good news to continue to drive the markets upward.