The markets continued to remain volatile and closed flat for the week with a negative bias. The BSESENSEX lost 75.40 points or 0.27% to close at 28,077 points while NIFTY lost 5.25 points or 0.06% to close at 8,666.90 points.
The new governor of Reserve Bank of India has been announced. The present deputy governor Mr Urjit Patel has been nominated as the Governor and would succeed Raghuram Rajan. Mr Urjit Patel has been hailed by bankers and captains of industry and is expected to toe the RR line. He is as some people say a tough person and is also responsible for drafting the fiscal management bill which capped the deficit at 3%.
The week ahead sees August futures expire on Thursday the 25th August and the current level of NIFTY at 8,666.90 points is a mere 0.60 points or 0.01% higher than the expiry level of 8,666.30 points. It’s anybody’s game and the bears would like to push things having lost out on the last few months consecutively.
The issue from RBL Bank Limited has opened on Friday and 0.66 times of the issue has already been subscribed. Earlier the company had allotted to 25 anchor investors comprising of 52 entities the anchor portion of 1.61 cr shares. The issue comprises of a fresh issue for Rs 832.5 crs and an offer for sale of 1.69 cr shares in a price band of Rs 224-225. The issue looks expensive when compared to PSU banks but more reasonable when compared with private banks. The most expensive peer for RBL is Kotak Bank at 4.2 times book value compared to 2.44 times for RBL.
Markets seem to have over discounted all the good news and look expensive currently. Allow the markets to correct themselves before re-entering the markets.
