India Insight

Markets this week: Sensex falls 2.6 percent, Jindal Steel slumps 9 percent

After rising for four consecutive weeks, the BSE Sensex fell 2.6 percent in the last five trading sessions, as a surprise repo rate hike by the Reserve Bank of India (RBI) on Sept. 20 dampened investor confidence and battered banking shares.

Rate-sensitive sectors were hurt — the banking index and the realty index lost over 7 percent in the week. YES Bank fell 14.5 percent, SBI lost 6 percent while shares of DLF slumped 13 percent.

While analysts expected the new RBI chief Raghuram Rajan to hold rates last week, expectations for monetary policy have suddenly shifted towards further tightening after the rate hike, a recent Reuters poll showed.

Here are the top losers and gainers of the week.

LOSERS

JINDAL STEEL AND POWER: The stock fell 9.2 percent this week, after rising for three consecutive weeks. Shares in Jindal Steel have struggled in 2013 and are down more than 47 percent.

JSPL’s stock has underperformed over the last one year on account of issues related to allocation of coal blocks. Selling has been further intensified due to subdued domestic steel demand and a decline in spot power realizations, IIFL said in a report on Sept. 27.

Kejriwal needs different approach to win hearts and votes

The Arvind Kejriwal-Robert Vadra faceoff has finally reached the place where it should be — in court instead of in the press.

An activist named Nutan Thakur filed a public interest litigation (PIL) in the Allahabad High Court on Oct. 9, and it has now been admitted. The government must respond within three weeks. Thakur wants the court to explore allegations by social activist Kejriwal that Vadra, son-in-law of Congress Party chief Sonia Gandhi, has been involved in shady land deals.

Perhaps court is the best venue for trying to find out if there is any less-than-aboveboard connection between Vadra, real estate firm DLF and the Haryana government, despite the lonely, but rewarding work of good investigative journalists.

The news this weekend: LPG, Kejriwal, toilets, politicians… and Somali pirates

It’s shaping up as a busy weekend for India’s politicians…

The price of LPG — liquefied petroleum gas cylinders, or cooking gas — has risen 11.42 rupees per cylinder because dealers are getting higher commissions. TV channels attacked the government because this “shocker” comes right after the imposition of a cap on subsidized cylinder sales was imposed.

Bharatiya Janata Party politician Smriti Irani said the party will hold a nation-wide protest on Oct. 12, saying the higher prices are “anti-women”. This is presumably because they do more of the daily cooking than men, whose potential inversely proportional waistline shrinkage could be in their favour.

We all know who the main attraction is on news channels nowadays: social activist-turned-politician Arvind Kejriwal. Here are the pots that he’s stirring:

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