Banknifty shennanigans did not disturb the market breadth leading to a further decline in volatility and your short strangles are doing well. Shorts on ICICI may not pan out for traders but SBI will bear pain for continuing on bad debt downhill slopes even as the PSU crowd per se led by PNB and the private sector biggies improved their NPA score till FY2012-13 to 3.33% as discussed by PC yesterday. Private sector banks have done well to bring down the cost of Top 10 NPA accounts to less than 40% of the total and the Foreign banks continue to focus on Trade banking as is their success mantra in Asia overall with High NPAs in select accounts
IDFC and LIC Housing as expected did not yield new licenses but one should continue holding these investments as the current cut is unlikely to turn into a run. Unfortunately India Post also has to do a lot to convert its vault of small savings into a bank from the signs.
Banknifty may well not move down below current levels esp if one constructs an index of profitable banks from the current index and neglects SBI, United Bank of India , BoI, Vijaya Bank and a few other borderline red marks in the current BSE and NSE indices. I for one eagerly await new volume in the BSE 100 and even MCX to test options though Nifty remains a key barometer unlikely to lose significance.
- India Morning Report: Sharp cuts ensure quick bottom in India around 5650 (awardz.wordpress.com)
- Sensex falls over 200 points, Nifty slips below 5800 (profit.ndtv.com)
- India Morning Report: July series catches with investors, Investors coming back? (awardz.wordpress.com)
- India Morning Report: Markets open on a optimistic note in new week (awardz.wordpress.com)
- SBI rules out cut in minimum lending rate (rediff.com)