This week, although with only 3 trading days, was fantastic for the markets as Nifty 50 gained 3%. Gold made new highs as well. RBI paused the rate hikes in its latest MPC meeting which resulted in Yields falling to 7.28.
NSE 500 also gained 3% this week and all sectors were up. There were no “losers” this time but the worst-performing sectors were PSU Banks, FMCG, and Metals. The Realty Index gained a whopping 6% this week although it is down 15% over last year.
Off the charts 📉📈
Compared to global indices, this week belonged to the Nifty 50 with a 3% gain. Nasdaq 100 which struggled in the latter half of 2022, has gained its mojo back and is the best performer of 2023 (YTD).
What we are reading 📝
Short selling is mostly misunderstood and often demonized. But, it’s not as sinister as it is made out to be. Rather, its an important market function. Podcast: How does short selling work?
Loss aversion is a cognitive bias that suggests that for individuals the pain of losing is psychologically twice as powerful as the pleasure of gaining. Read: Why do we buy insurance?
What happens when promoters bend rules for their own benefit? Minority shareholders get short-changed. Investors need to keep an eye on those companies and such promoters. Read: Promoters gaming rules for own benefit
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This is a price index, used worldwide, published since 1986, by The Economist as an informal way of measuring the purchasing power parity (PPP) between two currencies. This index compares the price of a popular food product (of a global fast food chain) in two countries by converting the price to a base currency (usually the dollar).
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