Thursday, April 7, 2016

Profit Booking Continues - RBI Wants Banks Cleaned

Another bout of profit booking was witnessed in Indian markets. Serious damage was being inflicted on scrips in a secular manner. Traders on the long side had no place to hide.

What can be said of Raghuram Rajan, our RBI Governor of immense knowledge and experience!! He claims that he wants to restore the health of the banking sector.

Imagine after the banks have incurred loss of $ 120 billion in bad and troubled loans, today he wakes up and gives a clarion call for clean up drive in Indian Bank? Bah!!

What was Raghuram Rajan doing in his entire tenure when the banks were splurging away tax payers money in bad loans with little or no collateral? As a watchdog of Banking sector, why was RBI snoring till date? No red-flagging, no regulatory action - just free for all. In such scenario do we need a regulatory behemoth named RBI or just our finance ministry coupled with a mint should suffice? Point to ponder!

Anyway the status of our long positions are as under :-

CANBK : Bought at 194, Closed at 181.5
JINDALSTEL : Bought at 62.5, Closed at 60.15
INDIACEM : Bought at 87, Closed at 87.
RPOWER : Bought at 50, Closed at 48.75
IOB : Bought at 30, Closed at 29.1
UNIONBANK : Bought at 134, Closed at 125
ANDHRABANK : Bought at 53, Closed at 50.95
BANKINDIA : Bought at 98, Closed at 90.95
ORIENTBANK : Bought at 94, Closed at 86
SYNDIBANK : Bought at 67, Closed at 66.05
HEXAWARE :  Bought at 268, Closed at 251.5
BANKBARODA : Bought at 150, Closed at 143.4
KTKBANK   :  Bought at 104, Closed at 101.9
UCOBANK  :  Bought at 40, Closed at 37.55
ALBK    :  Bought at 57, Closed at 52.95
IDBI      :  Bought at 71, Closed at 67.4
PNB       : Bought at 87, Closed at 80.9
SBI    :  Bought at 195, Closed at 182.8

Today Tatapower entered our recommended buy price and was bought at 64. Tatapower closed at 64.1