Not for weak hearts

Belagavi Prime Minister Narendra Modi being welcomed on his arrival at KSRPTC Helipad in Belagavi Karnataka His demonetisation move which caught everybody unawares has set the markets hopping adding to concerns in an uncertain global climate PicPTIThe last week was choppy and not for the faint hearted Prime Minister Narendra Modi took the nation by storm and caught the market unawares with his move to demonetise currency notes of R 500 and R 1000 with effect from midnight November 8 The US had begun voting and the next President would be known in about 1620 hours from then What happened next was complete chaos at the marketsThe markets saw the BSESENSEX lose 1800 points intraday while the NIFTY lost 540 points Closing was much better with markets recovering about 80 per cent from the lows Thursday was a day of recovery and Friday yet another day of losses on account of currency woesIt figuresThe week ended with BSE SENSEX down 45533 points or 167 per cent to close at 2681882 points NIFTY lost 13745 points or 163 per cent to close at 829630 points The broader markets saw the BSE100 BSE200 and BSE500 lose 170 per cent 192 per cent and 204 per cent respectively BSEMIDCAP lost 292 per cent and BSESMALLCAP was down 305 per cent The top sectoral gainer was BSEMETAL up 504 per cent followed by BSEBANKEX 378 per cent and BSEPSU 361 per cent The top sectoral loser was BSEREALTY down 1094 per cent followed by BSECONDUR 792 per cent BSEAUTO 572 per cent and BSEIT 547 per centThe top gainer in individual stocks was Punjab National Bank up 1828 per cent followed by Bank of Baroda 1281 per cent and State Bank of India 1237 per cent The top loser was DLF down 1658 per cent followed by Maruti 1013 per cent TCS 966 per cent and Mah amp Mah 952 per centTrump stumpsIn what is being termed as an upset Donald Trump was elected the 45th President of the United States of America Global markets had taken a beating when Trump was leading in the election and they fell on November 1 in USA and November 2 in India The Dow is now at a life time high and closed with gains of 95938 points or 536 per cent at 1884766 points Global currencies took a beating on Friday with the South African Rand down 525 per cent Brazilian Real down 517 per cent Mexican Peso 354 per cent Russian Rouble 344 per cent and Malaysian Ringgit 278 per cent The Indian Rupee was fairly steady losing 082 per cent The rupee lost 55 paisa to close at Rs 6725 Considering the losses suffered by others it was actually a gainer in the basketListing lookThere were two listings which happened on Monday and Tuesday While PNB Housing Finance had a great listing Varun Beverages managed to eke out gains on day one At the end of the week PNB Housing was up 1957 per cent at Rs 92670 against an issue price of Rs 775 while Varun Beverages was down 137 per cent at Rs 43890 against issue price of Rs 445 Things at the Bombay House the headquarters of Tata Group are turning acrimonious The feud between ousted chairman Cyrus Mistry and interim chairman Ratan Tata just got worse Tata sons would be requisitioning an Extraordinary General Meeting EGM to oust Cyrus from the chairmanship The feud is not good for either of them and needs to be resolved at the earliestStreet mayhemThe performance of PSU banks on the NPA front seems to be getting marginally better The list of NPAs has not reduced but the addition finally seems to be getting under control Consequently we saw the PSU banks being gainers in the week when there was mayhem on the streetThe low levels which the market has reached are levels made on June 24 The low on the SENSEX was 2590245 while it was 792705 In short the entire rally from June to September has virtually been retraced and almost 23rds happened in just one day The high made on September 67 was 2907728 points and 896870 points Roughly the gain from the low to the high was 3100 points on the SENSEX and 1000 points on the NIFTY It was a sharp fall and needs time for the markets to regain their composureA setbackThe currency demonetisation has caused a setback to the economy in the short term and results for the OctoberDecember quarter would be partially affectedThis step would certainly ensure that GST is a reality with effect from 1st April 2017 GST would be a dampener in the short term for industry in March 2017 Looking at things practically the year 201617 would therefore not see the turnaround that was being hoped for One should wait for that in 201718 onlyThe markets would be under pressure when they reopen for trading on Tuesday One should be choosy in buying stocks as there would be no dearth of choices in the coming days Take your pick and enjoy buying at bargain pricesArun Kejriwal is founder of the Mumbaibased advisory firm Kejriwal Research amp Investment Services Pvt LtdDisclaimer 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