Young Investor

Markets in a minute

| Updated on September 03, 2011

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With Anna Hazare breaking his fast, the spotlight was back on market developments. A relief rally across markets, talks of upcoming FPOs, draft guidelines for new bank licenses and slowing GDP growth hogged much of the attention this week. Here's a slice of the conversation:

Aditi: It's as if the markets were celebrating the breaking of Anna Hazare's indefinite fast… who would have expected them to bounce back the way they did - with such aplomb!

Vikram: Funny you should say that. I thought a relief rally was along expected lines, especially after the beating our markets took the week before. Besides, it was a truncated week. Maybe the bears decided to take some time off!

Aditi: Ha ha! After having moved up by over 3.3 per cent, let's hope the Sensex doesn't shock us again… Hopefully, the 16k level proves bankable. That reminds me, what do you make of the RBI's draft guidelines for issue of new bank licenses?

Vikram: The guidelines keep the banking dreams of companies such as Shriram Transport, LIC Housing and Reliance Capital alive… But I think Bajaj Finserv and L&T Finance Holdings may be among the most well placed.

Aditi: Overall, RBI's done a great balancing act. It's set a fairly high entry barrier, and rightly so.

Vikram: Hmm, more banks in the offing then! Speakingof which, parliament has finally approved the SBI (Subsidiary Banks Laws) Amendment bill. This will pave way for the central government to effectively manage the affairs of the associate banks. Some of these scrips were up significantly.

Aditi: Let's hope the market remains as buoyant in the coming weeks too. After all, talks of follow-on public offers of state-run companies are gathering steam now. ONGC FPO may happen in September. BHEL, Hindustan Copper and SAIL too are in the fray.

Vikram: Did you notice, the markets completely ignored the slowing GDP data last week In the June quarter, the economy grew at 7.7 per cent; its weakest in six quarters.

Aditi: I think your theory of bears holidaying would explain it. But , I wonder what lies ahead… with a spate of interest rate hikes, high inflation and weak global conditions.

Vikram: While we're on the subject of challenges, Maruti Suzuki had a rough week …Renewed labour troubles have affected production at its Manesar plant.

Aditi: Call it Maruti's labour pain…analysts say the strife could hit the production of the new Swift, which has received some 85,000 bookings in just around 10 days after launch?

Aditi: Indian consumers seem unmindful of rising interest rates and fuelprices. Some ball game it is. That reminds me, Kolkata football fans had a ball! Lionel Messi kept his date with the football crazy city.

Published on September 03, 2011

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