Tired and wired

The markets ended the short four day trading week with minor losses The BSE SENSEX lost 7540 points or 027 per cent to close at 28077 points while the NIFTY lost 525 points or 006 per cent to close at 866690 points The broader indices saw the BSE100 BSE200 and BSE500 gain 036 per cent 038 per cent and 071 per cent BSEMIDCAP gained 221 per cent while BSESMALLCAP was up 201 per cent In sectoral gainers the top performer was BSEMETAL up 401 per cent followed by BSEBANKEX 248 per cent BSEPOWER 221 per cent and BSEOILampGAS 211 per cent On the losing side the top sector was BSEIT down 372 per cent followed by BSETECH 316 per cent and BSEFMCG 047 per centDeputy Governor of RBI Urjit Patel will take over as the central bankrsquos new head ending two monthsrsquo speculation about Raghuram Rajanrsquos successor PicPTI SuspenseIn individual stocks the top gainer was SAIL up 841 per cent followed by Hindalco 838 per cent Bank of Baroda 824 per cent and Cairn India 810 per cent On the losing side were Wipro down 426 per cent followed by Infosys 395 per cent and HCL Tech and Tech Mahindra at an identical 394 per cent Clearly the gainers were bigger than the losers The Indian Rupee lost 17 paisa or 025 per cent to close at 6706 Dow Jones lost 2390 points or 013 per cent to close at 1855257 points One gets a feeling that markets have run out of steam and are trying to catch up on their breath before the next move The uncertainty is whether this next move would be upwards or downwardsOpeningIn primary market news the issue from RBL Bank has opened and the issue has received 066 times subscription on Day One The price band is Rs 224225 and the bank has allotted shares to 25 anchor investors comprising 52 entities Shares are being offered at a P E multiple of 23752386 times the annual earnings based on financial year ended March 2016 On the book value the shares are offered at 244 times The PSU pack trades below book value while the leading private sector banks trade upwards of three times book value going upto 420 times for Kotak Mahindra Bank Looking at the fact that the bank has completed the investment it looks attractive to invest at current valuesSuccessorThe Govt has appointed present Deputy Governor of the Reserve Bank of India RBI Urjit Patel to succeed outgoing governor Raghuram Rajan The rationale behind the same was to provide continuity in direction and policy as Urjit Patel was a key player in Raghuramrsquos team over the last three years One clear thought emerging is that the new governor is not going to reduce interest rates in a hurry On the economic data front while the IIP or industrial production numbers for June 2016 have improved compared to the previous month and year ago numbers inflation whether it be CPI or consumer and WPI or wholesale have increased for July While this is a short term aberration and is likely to again reduce in the coming months it would add pressure on the Govt and the new RBI governor as far as interest rates are concernedSeriesAugust series futures expires on Thursday August 25 The current value of the series is 866690 points and at this level they are virtually flat being up less than a point at 060 points The series is therefore wide open for both bulls and bears and the bears in particular would look to drive home and create an advantage something they have not been able to do in quite a few months now With virtually no news in the offing they could upstage the bulls The markets are looking tired and need to consolidate before any next big move A larger correction is in the offing and it could start this week Lets keep our fingers crossed for the markets and hope for the bestDisclaimer 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