Weekly Recap: I don’t know

The Nifty continued its slide, down -1.98%. Some of the beaten down sectors staged a dead-cat bounce. The new RBI governor is likely to follow Brazil and Turkey in hiking short-term rates to stabilize the currency and tame inflation. Meanwhile, overly leveraged business are going to take a hit. Not to mention the worsening of the payment situation in the infrastructure and real-estate sectors.

Index Performance

Top Winners and Losers

BHARATFORG	+17.08%
PFC	+17.64%
RANBAXY	+31.53%
BHEL	-21.52%
ASIANPAINT	-13.40%
GSKCONS	-11.27%

Ranbaxy was the turn-around story of the year (so far…) It appears that investors are finally able to overlook short-term challenges and look at longer-term growth.

ETFs

JUNIORBEES	+3.41%
GOLDBEES	+1.38%
PSUBNKBEES	-0.76%
NIFTYBEES	-2.48%
INFRABEES	-4.42%
BANKBEES	-5.98%

Banks continued to get crushed.

Advancers and Decliners

Not a bull in sight…

Yield Curve

The yield curve seems to have stabilized. However the RBI did announce further liquidity tightening measures after the markets closed yesterday.

Sector Performance

Thought for the weekend

Sometimes I am asked things I could not possibly know, particularly about the future. Rather than guess, I believe the best approach is to admit the truth, then plan accordingly. The alternative is to do what too many people do: Make predictions, then marry those forecasts. This usually leads to catastrophic results.

Source: On the Value of Not Knowing