It was one of the best weeks seen in seven months for the indices with the Sensex rising as much as 2.37 per cent. The gains were largely on account of the government's drive to recapitalize the banks in India, which was announced for a staggering sum of Rs 2.11 lakh crores.
However, by Friday some of these banks had given up substantial part of their gains. Results were eagerly watched this week, with the big dampener being Yes Bank, which saw a substantial slide of 7 per cent in a single trading day, after diversion seen in asset quality reported.
Infosys numbers were largely in line and its share price was being supported by the buyback and the dividend. Going forward into next week it is difficult to see any downside, except in places where individual quarterly numbers are bad.
Buying shares at the moment maybe a little risky and it would be a good idea to use a very contrarian approach to investing. Investors may do well to buy shares that have been dumped.
Global cues were extremely robust this week with the Dow Jones showing no signs of falling and in fact hit new peak levels. In Europe, the European Central Bank announced a gradual tapering, which fuelled markets in the region. It has never been this good for equities with no signs of any negative news.
It is becoming harder to believe that markets would fall anytime soon, unless there is some global chaos. So, if you have not managed to buy at lower levels, one is not sure when you may get to do so. For the time being it is better to stay on the sidelines as stocks have become terribly expensive.