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Nifty: Bank Nifty outperformance may ease further The appointment of Raghuram Rajan as RBI governor, coincided with perceptible change in India's monetary policy. A host of measures were taken to successfully improve the faltering current account situation and sliding INR. Though, the measures did not see any marked improvement in credit growth or asset quality of banks, especially PSBs, the Bank Nifty witnessed huge outperformance over Nifty; perhaps due to under-ownership of financials since global financial crisis Since beginning of 2015, the outperformance has eased to some extent. However, considering the current state of economy and credit, the outperformance does not seem justified and needs to correct further. The first phase of correction has been led by PSBs and ICICI. The next phase may see some private banks also joining. Could short Bank Nifty Long Nifty still be a good pair trade?    

Thought for the day "Power does not corrupt men; fools, however, if they get into a position of power, corrupt power." —George Bernard Shaw (Irish, 1856-1950) Word for the day Clishmaclaver (n) Gossip; idle or foolish talk. (Source: Dictionary.com) Malice towards none When it comes to choice of words and buses - Arvind Kejriwal is truly an Aam Aadmi! First random thought this morning The democracy in India appears to have degenerated into the worst form of Feudalism. Egocentricity rather that public and national interest is palpably driving the policies and administrations. The elected representatives even claim accolades for repair of choked drains and broken roads by civic authorities. Did the writers of our constitution intend to create a new "Ruling Class" in elected representatives or these people were actually intended to be "Public Servants". Investment Strategy 201...

Thought for the day "If women were particular about men's characters, they would never get married at all." —George Bernard Shaw (Irish, 1856-1950) Word for the day Telluric (adj) Of or relating to the earth; terrestrial. (Source: Dictionary.com) Malice towards none ...and the parrot stays caged, happily eve rafter! First random thought this morning A US town has recently rejected a proposal for a solar farm following public concerns. Public in Woodland, North Carolina, expressed their fear and mistrust at the proposal to allow a Solar Company to build a solar farm off Highway. Jane Mann, a retired science teacher, said she was concerned the panels would prevent plants in the area from photosynthesizing, stopping them from growing. ( see here ) This reminds me of the opposition to India's first hydro-power project in Punjab (Bhakhra-Nangal at Satluj river) when farmers protested that their fields wil...

Thought for the day "I learned long ago, never to wrestle with a pig. You get dirty, and besides, the pig likes it." —George Bernard Shaw (Irish, 1856-1950) Word for the day Matutinal (adj) Relating to or occurring in the morning; early. (Source: Dictionary.com) Malice towards none Lord Venkateswara, Sidhi Vinayak, Sai Baba - all Gods seems to have decided to step in to help PM Modi; with gold to begin with. First random thought this morning The demolition of allegedly illegal shanties on railway land in Delhi and the events in the aftermath are significant in many ways. It highlights the complete lack of political consensus on the approach to urbanization and civic compliance, though in private all politicians would agree to the need for this. Terming it lack of administrative empathy would be inappropriate. The malaise is much deeper. The rising economic disparities have pervaded deep into social psyche. ...

Thought for the day " When a stupid man is doing something he is ashamed of, he always declares that it is his duty. " —George Bernard Shaw (Irish, 1856-1950) Word for the day Fugacious (n) Lasting but a short time; fleeting. (Source: Dictionary.com) Malice towards none Bullet train is welcome! Please also find a way to abolish hand pulled rickshaws and freight carts! First random thought this morning History has been created in Paris. Regardless of the skeptics who would want to find split hairs and find loopholes in the landmark climate deal, I see this deal as portent of hope for humanity. This shows that global cooperation may after all not be dead as yet. The elements which might have based their strategies on lack of global cooperation would be shocked. Resumption of Indo-Pak composite dialogue and joint strategy for operation against IS are few other indicators. Would be interesting to see if US Fed also adds to ...

Thought for the day "One has to be able to count if only so that at fifty one doesn't marry a girl of twenty." —Maxim Gorky (Russian, 1868-1936) Word for the day Schmatte (n) An old ragged garment; tattered article of clothing. (Source: Dictionary.com) Malice towards none The law has no place for opinion of the public . —Mumbai HC Judge First random thought this morning If we go by the popular maxim of Eldridge Cleaver , the entire political spectrum in India would appear part of the problem. As a common man I fail to understand why politicians are always busy highlighting the problems. Someone needs to remind them that no one needs to tell us the problems we face in our day to day life. Tell us the solutions. If you know any politicians telling the solution for rise in price of pulses to the government - please do let me know. An Investor's Diary Next week US FOMC is sch...

Thought for the day "You can't do without philosophy, since everything has its hidden meaning which we must know." —Maxim Gorky (Russian, 1868-1936) Word for the day Antipodes (n) Places diametrically opposite each other on the globe. (Source: Dictionary.com) Malice towards none Punjab - once the richest state in the country has reportedly gone bust. Courtesy who? First random thought this morning It is high time that We, the People of India get together to change the Constitution to make the Act of disrupting the proper functioning of Parliament and any other assembly of People's representation an act of Sedition, punishable with rigorous imprisonment and permanent disqualification from holding any public office. ( If you agree click here to sign the petition to the President of India ) An Investor's Diary As feared ( see here ) the Indian stock market has tripped from the edge an...