Last review for RR

It was an eventful week gone by The biggest financial reform after the 1991 liberalisation has just been cleared by the Rajya Sabha In the end it was good sense which prevailed in passing the constitution amendment bill of Goods and Services Tax GST unanimously The AIADMK staged an inconsequential walk out Though the bill has been passed a lot of work needs to be done at the Centre and the State level before GST actually sees the light of day The markets did not react to the bill being passed the next day but chose to do so later when we saw a sharp 364 point or 131 per cent rally on SensexFinance Minister Arun Jaitley with RBI Governor Raghuram Rajan during the pre policy discussion at North Block in New Delhi PicPTIThe Sensex in a choppy and eventful week closed with modest gains of 5851 points or 021 per cent to close at 2811037 points Nifty gained 4465 points or 052 per cent to close at 868315 points The broader markets saw BSE100 BSE200 and BSE500 gain 039 per cent 038 per cent and 036 per cent respectively BSEMIDCAP gained 030 per cent but BSESMALLCAP lost 003 per centGains and lossesThe top sectoral gainer was BSEMETAL up 368 per cent followed by BSEAUTO 273 per cent and BSEPSU 134 per cent The losers were led by BSECAPGOOD down 209 per cent followed by BSECONDUR 144 per cent and BSEFMCG 079 per cent In individual stocks the top gainer was HCL Tech up 916 per cent followed by Hindalco 776 per cent Tata Steel 737 per cent and Hero Motocorp 711 per cent The losers were led by ICICI Bank down 637 per cent followed by Bhel 552 per cent Lupin 379 per cent and Larsen and Toubro 289 per centGlobal markets saw Dow Jones gain 11129 points or 060 per cent to close at 1854353 points In a surprise and unexpected move the Bank of England announced a rate cut of 25 basis points and also for buyback of 70 billion pounds of bonds That is 10 billion corporate bonds and 60 billion government bonds This move would add tremendous liquidity to global markets The Indian rupee gained 25 paisa or 037 per cent to close at Rs 6677The Reserve Bank of India meets tomorrow for the monetary policy This would be the last review for Raghuram Rajan as Governor before he steps down in September It is widely believed that rates would remain unchanged in this meeting The Govt has announced a target of 4 per cent for consumer inflation as part of the monetary policy for the next five yearsEye on issuesThe primary market saw the listing of Advanced Enzyme Technologies Limited The listing was with gains of 315 per cent on day one where the share closed at Rs 1178 against an issue price of Rs 896 The tragedy was that HNIs who had subscribed the issue 394 times lost money as the cost of funding was Rs 350 and the share gained Rs 282 The share from the next day gained further and closed the week with gains of Rs 422 or 47 per cent at Rs 1418 All those HNI investors who held on for a couple of days would have made money eventuallyThere were two issues which had opened for subscription during the week The first issue was from Dilip Buildcon which was subscribed 2095 times The QIB portion was subscribed 975 times HNI 7964 times and retail portion 235 times The second issue was from S P Apparels which was subscribed 266 times with QIB portion subscribed 221 times HNI 510 times and retail 190 times In this week there are no issues opening as of nowEnd timesThis week would see RBI announcing its policy and a host of views and reviews on GST Results season would come to an end next week and so would the monsoon session of Parliament Valuations are looking expensive and though there is plenty of optimism what with GST under the belt and a surplus monsoon after two consecutive years of droughtThere is no shortage of optimism and feel good factors With liquidity from domestic and overseas adding fuel to the fire valuations are getting stretched In such a scenario it makes sense to take money off the table and wait for valuations to become more attractiveWith no events to follow over the next couple of months they would in all probability improve Use rallies to sell and then wait for better opportunities is the way to goDisclaimer 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