Weekly Recap: Manufactured Complexity

nifty weekly performance

The Nifty rallied 3.81% this week, largely on the back of the new RBI Governor’s “Big Bang” entry.

Index Performance

Banks rallied on the back of RBI’s FX swaps that is expected to bring in $10bn from non-resident deposits.

index performance

Top Winners and Losers

ICICIBANK +19.24%
BHEL +19.54%
YESBANK +20.38%
SESAGOA -7.02%
TATAPOWER -6.66%
HEROMOTOCO -5.68%
Say Yes to Yes Bank? After spending most of 2013 in the boondocks, it appears that RBI’s measures was what the market was waiting for…

ETFs

BANKBEES +10.04%
NIFTYBEES +4.09%
JUNIORBEES +2.48%
INFRABEES +1.53%
GOLDBEES -1.79%
PSUBNKBEES -8.24%
PSU (State-owned) banks did not feel the same love that private banks felt. Gold is probably more exposed to currency fluctuations than the macro at this point…

Advancers and Decliners

Are we at the cusp of a breakthrough here?

advance decline

Yield Curve

Rates ended lower across the curve but the term-structure remains inverted.
yield curve

Sector Performance

IT corrected and banks rallied…
sector performance

Thought for the weekend

For all their great work, it is unclear that economists have actually helped government officials manage the complex task of managing a national economy any better than they ever have. We are bedeviled by manufactured complexity — complexity that could have been avoided but has instead been amplified by the pursuit of narrow knowledge in a broad world.

Source: Our Self-Inflicted Complexity

If you enjoyed this post, please consider registering to get a weekly digest of our articles.
0 comments