The week registered strong gains on budget day and that helped in a positive week for the markets. The budget day gains were 486 points on the BSESENSEX and 155 points on NIFTY. The week closed with the BSESENSEX gaining 358.06 points or 1.25% and NIFTY 99.70 points or 1.15%.

It’s been a very long time probably more than a decade that markets have gained on budget day and remained positive thereafter. There was a pre-budget rally as well and the SENSEX has moved from 26,626 at the beginning of the year to the current level. Similar movement on NIFTY has been from 8,185 levels.

The budget this year had to tackle three issues and it appears to have done so. The first was the issue of effect of demonetisation and restoring the confidence of the middle and lower strata of society. The second was the electorate in the five states which have gone to polls starting with Punjab and Goa on Saturday. Thirdly was to kick start the economy. The budget has taken care of all these three issues and gone further in tackling two more burning issues. The first is the electoral funding which has been very well tackled by reducing the limit of cash and anonymous donations to Rs 2,000 from the present limit of Rs 20,000. The second reform which is even more far reaching is the introduction of bonds where the payment of same is by way of digital form and the same in a time bound manner becomes secret as far as the party receiving the same is concerned.

The second is in the case of long term capital gains where the issue of bogus companies assisting people to convert black money to white through huge gains by manipulating prices has been tackled. In case STT is not paid on such allotment of shares they would not be entitled to the benefit of long term capital gains.

Shares of BSE limited listed on the NSE and registered spectacular gains. On Friday the NSE where the shares are listed and located in BKC became Dalal Street and one had the most well attended listing ceremony held. Shares which were issued at Rs 806 in the offer for sale closed at Rs 1,069.20 a gain of Rs 363.20 or 32.66%.

The US is the place to keep your eyes focussed on. President Trump is adding to the volatility in global markets with his announcements. His order about issue of visas to select Muslim countries has been struck down by the courts. Very clearly this is not the end of the tussle which would be there between the President and the judiciary in the four years.

In other news Idea Cellular and Vodafone are in talks to merge and shares of Idea which are listed rose a massive 40.36%. Vodafone is not a listed player. Incidentally shares of Bharti Tele also had a great week gaining 9.34% to close at Rs 353.65. PSU banks had a great Friday and saw huge gains. Union Bank gained 17.45%, while Bank of Baroda, Canara Bank and Punjab National Bank gained between 9% and 11%.

Markets have had a great start to 2017. Take a break as this pace is unsustainable.

BSE Limited made its debut on the NSE on Friday the 3rd of February and was off to a flyer gaining 32.66%. The offer for sale of was for 1,54,27,197 shares in a price band of Rs 805-806. The company had allotted 46,28,158 shares to 25 anchor investors comprising of 38 entities.

The issue received excellent response and was oversubscribed 51.22 times. The QIB portion was subscribed 48.64 times, HNI 159.03 times and Retail portion 6.48 times. The issue received 11.95 lac applications and created a new record in number of applications received beating the previous record of L&T Infotech.

The discovered price was Rs 1085 against the issued price of Rs 806. The high of the day was Rs 1200 and the low as Rs 1065.10. the closing price was Rs 1069.20, a gain of Rs 263.20 or 32.66%. The weighted average was Rs 1115.50.

The total traded volume was 157.71 lac shares which was 1.02 times the IPO size and 1.46 times if one considers the non-anchor position. The delivery volume was 61.22 lac shares which was 38.225 of the traded volume and 39.69% of the IPO size. Similarly it was 56.70% of the non-anchor position.

There were three bulk deals on the buy side and none on the sell side. Smallcap World Fund who was the allotted the largest number of shares in the anchor allocation of 868500 shares or 18.77% of the anchor allocation, bought 16,33,818 lakh shares at Rs 1100.44. With this his total holding increases to 25,02,318 shares which is 16.22% of the total equity. The others who bought were two entities of Nomura buying 15 lakh shares and 3,19,657 shares at Rs 1150.78 making a total of 18,19,657 shares or 11.79% of the paid up capital of BSE Limited.

It was a great listing and performance of BSE Limited which took the iconic Dalal Street to BKC for listing purposes.