Weekly Recap: Buy One Suit, Get Three Free

The Nifty went down 1.04% for the week, but yesterday was the proverbial “Black Friday” with the index tanking -4.08% in one day.

Index Performance

Banks were the worst hit with NPAs coming to roost. Plus the CBI is investigating debt restructurings that were a bet too promoter friendly.

Top winners and losers

ABIRLANUVO	+8.71%
IDEA	+8.83%
TATAMOTORS	+12.61%
BHEL	-10.09%
TITAN	-9.05%
YESBANK	-8.74%

Titan was the lamb to the slaughter with the RBI and the Finance Ministry hell bent on curbing jewelry sales. Idea continued to baffle sane investors.

ETFs

GOLDBEES	+8.50%
INFRABEES	-0.10%
NIFTYBEES	-0.76%
JUNIORBEES	-1.24%
BANKBEES	-3.46%
PSUBNKBEES	-11.62%

Banks got no respite while paper gold surged. How long before the government annexes the gold in the gold ETFs?

Advancers and Decliners

Yield Curve

The yield curve continued to shift up. Maturities out 5 years mostly flat but short-term looks stressed.

Sector Performance

2-3 wheelers over-turned their last week’s under-performance.

Thought for the Weekend

Linear thinking is dangerous. It is the easiest form of reasoning, lying on the path of least resistance. The simpler the path, the more readily people will march along it. Linear arguments are easy to make, as they require the least amount of evidence — past data points with a straight line drawn through them. However, the larger the crowd that follows the wrong line of reasoning, the more people pile in, and the greater the consequences if they are proved wrong.

Source: Ben Bernanke: Buy One Suit, Get Three Free