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.
Top Winners and Losers
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?
Yield Curve
Rates ended lower across the curve but the term-structure remains inverted.
Sector Performance
IT corrected and banks rallied…
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