Weekly Recap: Bubbles are a Good Thing

world markets 2014-03-21.2014-03-28

The Nifty ended the week a whopping +3.12% (+4.75% in USD terms.)

Here’s how the rest of the world markets faired:

Major
DAX(DEU) +2.61%
CAC(FRA) +1.75%
UKX(GBR) +0.89%
NKY(JPN) +3.32%
SPX(USA) -0.66%
MINTs
JCI(IDN) +1.45%
INMEX(MEX) +0.71%
NGSEINDX(NGA) +1.43%
XU030(TUR) +7.98%
BRICS
IBOV(BRA) +5.14%
SHCOMP(CHN) -0.29%
NIFTY(IND) +3.12%
INDEXCF(RUS) +2.81%
TOP40(ZAF) +3.06%
Commodities(CME)
Gold Futures $1293.80 -3.16%
Silver Futures $19.77 -2.53%
Platinum Futures $1404.70 -2.15%
Copper Futures $3.06 +2.17%
Brent Crude Oil Last Day Financial Futures $108.07 +1.08%
E-mini Natural Gas Futures $4.49 +3.99%

Nifty Heatmap

CNX NIFTY heatmap 2014-03-21.2014-03-28

Index Performance

index performance 2014-03-21.2014-03-28

Top winners and losers

IDFC +15.02%
CONCOR +16.35%
PNB +16.85%
ZEEL -5.78%
DRREDDY -5.50%
GLENMARK -3.51%
Dr Reddy and Glenmark led the drop in pharma stocks, something to do with the biotech massacre in the US?

ETFs

PSUBNKBEES +7.78%
BANKBEES +3.34%
NIFTYBEES +3.04%
JUNIORBEES +2.45%
GOLDBEES -2.77%
PSU banks rallied on the back of the RBI’s decision to delay adoption of Basel III norms.

Investment Theme Performance

High-beta stocks flew on increased risk-taking. A Modi win better workout…

Sector Performance

sector performance 2014-03-21.2014-03-28

Yield Curve

yield Curve 2014-03-21.2014-03-28

Thought for the Weekend

Robert Shiller on bubbles:

First of all, it’s a free world and people can do what they want. I’m not proposing we put the straightjacket on these things. The other thing is that human nature needs stimulation and people have to have some sense of opportunity and excitement. I think profits are an important motivator. In the long run, it’s hard to say that bubbles are really bad.

Source: Robert Shiller’s Nobel Knowledge

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