Short and sweet rallies

The week gone by saw the markets lose ground on four of the five days and remain flat on the fifth day The expiry of March series on Thursday was a bloodbath with indices losing sharp groundMONEY TALKS Arun Jaitley c flanked by CMD MS Rana Security and Printing and Minting Corporation of India LTD SPMCIL and Ajay Tyagi Additional Secretary during the SPMCILrsquos 9th Foundation Day celebrations PICPTISensex lost 80244 points or 284 per cent to end at 2745864 points while Nifty lost 22950 points or 268 per cent to close at 834140 points Broader markets saw BSE100 BSE200 and BSE500 lose 270 per cent 260 per cent and 266 per cent respectively BSEMIDCAP lost 250 per cent while BSESMALLCAP lost 386 per cent There was no sectoral gainer and the one to fall the least was BSECONDUR down 055 per cent Losers were led by BSEOILampGAS down 524 per cent BSEIT and BSEPSU down an identical 330 per cent and BSEBANKEX 320 per centIn individual stocks the top gainer was BPCL up 316 per cent followed by Lupin 257 per cent and Hindalco 110 per cent Losers were led by Bank of Baroda down 656 per cent LIC Housing 657 per cent Wipro 613 per cent HDFC 568 per cent and Reliance Industries down 492 per centThis was a new 52 week low for Reliance which intraday touched R 802 before closing at Rs 812 It may be mentioned that Nifty has in 12 months gained 25 per centMarch series futuresThe March series futures expired on Thursday and spooked the markets Sensex lost 654 points while Nifty lost 208 points The fall also led to the March series ending at 834215 points a monthly loss of 34470 points or 397 per centThe fall was attributed to position unwinding yearend considerations and also the attack on Yemen by Saudi Arabia Global markets have also corrected during the week and Dow Jones closed at 1771266 points down 41499 points or 229 per cent FIIrsquos were buyers of just about Rs 287 crores of equity while domestic institutions were buyers of R 315 crores The Indian rupee at R 6241 gained 5 paisa or 008 per centIn the primary market news shares of Adlabs Entertainment Limited the owners of the theme park at Khopoli would be listing this week and allotment of shares of Inox Wind would be done Investors have a lot of expectations from these sharesA spate of right issues are currently happening and Tata Motors was the latest to do so The record date for the issue is April 8 and they would be offering rights to shareholders of ordinary shares and DVR shares at differential pricesAfter passing two bills and finding that the Land bill would not go through the government has decided to prorogue Rajya Sabha and repromulgate the ordinance with amendmentsThe government will now have the opportunity to debate the same in the current Budget session of Parliament after the break and also keep their options on a joint session open The intent of the government is quite clear that they mean business and impediments would be removed and ease of business doneFinancial year endsThe financial year ends on March 31 but trading has ended as we follow a T2 or trade day plus two days settlement The banks are closed for annual closing on Wednesday and then there are two consecutive trading holidays on Thursday and FridayThis means that trades done on Monday would be settled on the following Monday April 6 The week is likely to see volatile trading as the market is yet to get to terms after the current sharp fallThe next two days could also see some freakish movement in midcap and smallcap stocks on account of NAV net asset value an exercise done by funds to determine the value of their holdings at the end of the financial year Results for the quarter ended March 2015 would begin shortly and it is widely believed that they are likely to be a tad lower The market has already discounted the same and corrected in valueUse the current weakness to enter the market and this time around look for quick returns because there will be plenty of short but sweet rallies