A lot is happening all around us including the markets, unfortunately the markets are negative and are losing ground. The climate deal has been signed in Paris, India and Japan have signed many deals including the civil nuclear agreement and of course the bullet train will ply between Mumbai and Ahmedabad. While parliament not functioning has become a norm, the only variant is the reason for stalling of the same by the leading opposition party. While about ten days ago we were all told that the stalling was on account of vendetta on the herald case, we are now told that it is not so and it is back to the two CM’s of Madhya Pradesh and Rajasthan. How long is the nation to suffer on account of these politicians?
The markets fell on four of the five trading sessions during the week and in the course of the fall briefly on Friday fell below the psychological levels of 25,000 on the SENSEX and 7,600 on the NIFTY. The BSESENSEX lost 593 points or 2.32% while NIFTY lost 171 points or 2.20%. The broader market lost more and BSEMIDCAP was down 3.28% and BSESMALLCAP 2.98%.
The Dow Jones reversed gains of last week and lost 582 points or 3.26%. The Fed meets this Tuesday and Wednesday and it is widely believed that a 25 basis rate increase would happen. This would be an event after about 9 years. The event is discounted and in all probability markets should make a bottom in the immediate short term post the event.
In primary markets, both the issues which opened and closed last week did well and were well received. Dr Lal PathLabs was subscribed 33.41 times with HNI portion subscribed 61.28 times. In the case of Alkem Laboratories the issue was subscribed 44.29 times with HNI portion a staggering 129.96 times. The cost of funding was higher than normal at 8% for 8 days and coupled with the fact that the tax free bond issue from IRFC had opened at the same time made finance that much costlier. The third instalment of advance tax is also due by the 15th of December making money markets tighter. The last of the tax free bonds issue and the largest from NHAI opens this week. The issue from Narayana Hrudayalaya also opens this Thursday. The company runs hospitals and is headed by the well-known heart surgeon Dr Devi Shetty. The company plans to raise in an all secondary offering between Rs 600 crs and 613 crs. The price band is Rs 245-250.
FII’s in about eleven and a half months of the current calendar year have bought equity worth under Rs 10,000 crs while domestic institutions have been buyers of close to Rs 68,000 crs in the same period.
Tough times ahead for the markets and one needs to use dips to accumulate stock. Parliament would function one fine day and important bills like GST see the light of day.
