Straight from the Specialists
(Any opinions expressed here are those of the author, and not necessarily of Thomson Reuters)
After showing promise early in the week, the markets turned gloomy on Thursday with a sharp correction, ending the week with a 0.63 percent fall at 5850 – close to the support levels of 5840 which hasn’t been violated on a closing basis.
FII buying dipped considerably during the week, estimated at about $90 million. Worries that U.S. Federal Reserve may taper off bond buying led to a crack in the world markets on Thursday, and the Nifty fell 91 points, with most of the mid-caps breaking recent lows. The only silver lining was lower-than-average volumes, thus some buying support on Friday saw the markets holding steady.
The much-awaited banking license guidelines were announced by the Reserve Bank of India on Friday. On the face of it, it seems anybody having a 10-year track record and ability to come up with 5 billion rupees in equity capital can set up a bank. But with the RBI having sole discretion on approvals, very few unblemished names from “acceptable” sectors will be able to pass muster.