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Tuesday 14 May 2013

No News Worth Noting (For The Markets)

The last few months have been fairly uneventful in the equity markets. During the last 3 months (Feb 14th - May 14th), Sensex has been more or less flat. It was about 19,500 in Feb middle and is close to 19,700 today. In between, it went down to 18200 and up to about 20100. But, you would not believe that if you were clued into the pink papers or the "pink" channels - CNBC, NDTV Profit, ET Now etc. They would make you believe that the world changes with every breaking news!!

Corporate results are being announced and they are mixed. The economy is in a bad shape so it is unjustified to expect that companies would do exceedingly well in this kind of an environment. US economy is limping back very slowly, unlike it's stock market, which is galloping away. Europe continues to be in unknown economic territory.

Back home two interesting events took place:
1) Karnataka election results came out and Congress thumped the incumbent BJP
2) The much touted Food Security Bill was not passed in Parliament as it was not functioning amidst the plethora of scam revelations.

And here goes my comments on these two interesting events:
I read in a newspaper article that after 1980, no party which wins the Karnataka state elections has ever won the elections in the center. So, I am not sure if winning Karnataka was such a good thing for the Congress ;-)

On a more serious note, does this give a sense that the polity will not tolerate corruption as the media wants us to believe? Or is there local factors which loom large in the minds of people which decide the electoral successes of political parties. The answer to that would probably come in 2014.

As for the Food Security Bill (FSB), in my opinion, it is one of independent India's most shameful proposals of legislation. The noble objective of feeding the hungry is being used as an election gimmick without any consideration to how it will be implemented. If the government was so keen on this, it could try to prop up the derelict PDS system. It would not try to do that, as it knows it is not possible to effectively identify and reach the real poor, so it is trying to gather popular votes by announcing a scheme which it very well knows cannot be implemented.


  1. Food Security Bill would be a big fiasco if implemented.. It will open up a new massive channel of Corruption

  2. Abhishek,

    What is your view on Unichem after result?

    What factors are keeping price subdued?

    1. Good set of results from Unichem. They seem to be on track to do well. I would expect the price to catch up with value sooner rather than later. Why it is subdued is anyone's guess, but it is not a "sexy" stock, but may not have a lot of trader interest. But over sufficiently long timeframe (more than 1 year), I think Unichem should do well.

  3. Hi abhishek,
    Can u please update your recent portfolio? Or changes u have made after dec 12..
    I could only find your portfolio as on dec 12 on the blog...
    Thank you...

    1. Hi Ayushi,

      I usually update my portfolio details every 6 months. I don't have a lot of churn in my portfolio. Never have been a good market timer, so stock holdings don't change a great deal.