The original post appeared on the website of Economic Times and can be found here.
The Nifty50 rallied over 4 per cent in July and the trend may continue in August too. Technical charts and options data show a bullish picture as off now, which means if the market managed to sustain the momentum, Nifty may very well touch the 9,000 mark in August.
But here is the spoiler. Data for the past 10 years shows August has not been great for the bulls. On an average, the Nifty50 has given a negative return of nearly 1 percent in last 10 years. The index saw deep cuts of over 5 percent in August in three out of last 10 years.
In 2011, the Nifty50 saw a vicious cut of 8.8 percent in August, followed by a deep cut of 6.6 per cent in 2015. In 2015, the Nifty50 plunged 5.8 per cent.
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The original blog post is written by Hemant Parikh and can be found here.
RBI’s policy outcome, corporate earnings and macroeconomic data to dictate trend.
Next batch of Q1 June 2016 corporate results, progress of monsoon rains, macroeconomic data, trends in global markets, investment by foreign portfolio investors (FPIs) and domestic institutional investors (DIIs), the movement of rupee against the dollar and crude oil price movement will dictate market trend in the near term.
The major domestic event in the upcoming week is the Reserve Bank of India’s (RBI) third bi-monthly monetary policy meeting scheduled on Tuesday, 9 August 2016. The central bank had left its benchmark repo rate unchanged at 6.5% at its last meeting.
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The Reserve Bank of India has recently announced how banks can be opened. This informative article has been authored by Mastermind, Deepak Shenoy. The original post appears here.
RBI will allow banks to be created “on tap” in the private sector. Meaning if you qualify, you can go apply for a licence – much like a driving licence – and get one. The previous model was: you waited till the RBI told you it wanted people to bid for a licence. This wait could be for 10 years. Then you applied and you waited, usually for two or three years. Then you were told that your fingernails were dirty and please clean them and reapply. And then you died and no one remembered you for it.
Here’s what RBI said in 2013 about How to start a bank in India?
The new process will be less brutal, apparently. These are draft guidelines, released by the RBI today.
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