Get set for a bull run, soon

Markets gained last week on the first four days of trading and lost some ground on Friday Net gains were significant and markets closed at a new high for the year on the Sensex and Nifty The Sensex gained 70960 points or 262 per cent to close at 2783650 points while Nifty gained 21820 points or 262 per cent to close at 854140 points The broader markets saw the BSE100 BSE200 and BSE500 gain 264 per cent 234 per cent and 215 per cent respectively BSEMIDCAP gained 206 per cent but BSESMALLCAP gained a mere tad at 002 per centPrime Minister Narendra Modi Home Minister Rajnath Singh Finance Minister Arun Jaitley Parliamentary Affairs Minister Anant Kumar Congress leaders Mallikarjun Kharge Ghulam Nabi Azad Jyotiraditya Scindia at an allparty meeting ahead of the monsoon session at Parliament House in New Delhi PicPTIIn sectoral gainers the top performance was BSEMETAL up 831 followed by BSEBANKEX 527 per cent and BSEAUTO 363 per cent The losers were led by BSEIT down 356 per cent and BSETECH 197 per cent In individual stocks the top gainers were from either the metal or banking packTata Steel gained 1703 per cent followed by Vedanta 1412 per cent and the group company Cairn India which is to be merged up 1898 per cent The banking pack saw PNB gain 1565 per cent Canara Bank 1347 per cent and ICICI Bank 979 per cent The losers were few and one had to actually look for them The top loser was Infosys down 751 per cent followed by Tata Power 245 per cent and Sun Pharma 116 per centGainsThe Indian rupee gained 30 paisa or 045 per cent to close at 6706 Dow Jones had a great week gaining 36981 points or 204 per cent to close at 1851655 points The geopolitical situation is not too good and we seem to be having incidents spread across the world where the target is poor innocent citizens and unfortunately children seem to be bearing the brunt of it Bangladesh France US and now Turkey saw an attempted coupPrimary markets are in the pink of health currently Last week saw one issue listing one issue opening and closing for subscription and yet another company announcing its issue and having the road show Quess Corp which was subscribed overall 144 times and HNI or leveraged portion subscribed 392 times listed The share closed with gains of R 17465 or 5509 per cent at Rs 49165 against the issue price of Rs 317The issue from LampT Infotech did reasonable well with the overall issue subscribed 1169 times QIB portion 1991 HNI 1076 and retail portion 739 times The number of applications received was a record beating the recent 976 lakh applications at 1090 lakh applicationsIssuesThe issue from Advanced Enzymes opens on Wednesday July 20 and closes on Friday July 22 The company plans to raise R 412 crores at the top end of the price band of Rs 880896 The shares are being offered at price earnings multiple of 2487 based on the fully diluted consolidated earnings for the year ended March 2016 The earnings for the year are R 3603 The grey market for the issue indicates a premium in the range of Rs 360380 which is about 40 per cent of the issue priceParliament begins the monsoon session today July 18 It is a short session and would end before Independence Day on August 12 A large number of bills are expected to be put up for debate during this session including the allimportant GST Bill It is expected that the bill maybe amongst the first of the block and could be tabled in the first week of the monsoon sessionAssuming something like this does happen there is a possibility that the passing of the bill would lead to euphoria in the markets Euphoria or gloom does not last beyond the 4872 hour period and something similar would happen this time around as well On the flip side if it is tabled towards the end of the session the markets could be in an extended bull phase with the markets inching up in anticipation of GST becoming a lawInternationalGlobal markets seem to be doing better than expected even though Brexit has happened Though it sounds strange the fact remains that nobody likes falling markets In such a scenario one has to choose which way to tradeThe first choice is go with the trend of the market and the second is do what the mind says In short it means one has to reduce exposure to the market and wait for valuations to become justified or allow sanity to return I believe in India once important bills are passed the same logic would apply Trade cautiously and do not get carried away by euphoria It is always short livedDisclaimer No financial information whatsoever published anywhere in this newspaper should be construed as an offer to buy or sell securities or as advice to do so in any way whatsoever All matter published here is for educational and information purposes only and under no circumstances should be used for actual trading or making investment decisions Readers must consult a qualified financial advisor prior to making any actual investment or trading decisions based on information published here Any reader taking decisions based on any information published here does so entirely at his or her risk