By leaps and bounds

With 2016 a leap year, the past experience of Indian stock markets during such years is under focus. In the past four leap years, between 2000 and 2015, markets have swung both ways and, sometimes, quite sharply. In 2012, the benchmark BSE Sensex rose nearly 26 per cent; in 2008, it had crashed about 50 per cent.

Similarly, in 2004 and 2000, it had gained 13 per cent and lost 21 per cent, respectively. If the trend holds, the market is set for a significant move this year. Analysts are wondering if the direction will be down in 2016, considering the trend in the first week of the year.

Another gold bond issue on the anvil?

After reasonable success in the first tranche of gold bonds, the government is planning to launch another tranche soon, say sectoral people. While the first issue was launched in early November at Rs 2,684 per gm, prices are expected to be lower this time around.

For example, if the bond issue is launched in the coming week, the price could be fixed at about Rs 2,550 per gm.

The first tranche was subscribed by 63,000 applicants. The total amount collected was Rs 246 crore for 917 kg.

Is China short on global markets?

The recent fall in the Chinese market and its decision to ban short-selling have raised doubts in the minds of Indian market experts on whether China is taking advantage of global market volatility. Kotak Mutual Fund Managing Director Nilesh Shah posted on Twitter: "What is China up to? Lifted short-sell ban, circuit filters & devalued currency. Hope they haven't shorted global equity markets." Shah explains, "China is known to use its purchasing power and storage capacity to disrupt the market. In the commodity market, it has been known to stop purchasing a commodity, giving out the impression that they are out of the market. This leads to a sharp correction in commodity prices and, then, it steps in to buy."