By Ruma Dubey

The GST Bill, as far as the market is concerned is over and done with. It has nothing to do with its implementation; all that mattered was it getting through.

Monsoons are good and sowing has begun in full force. As per information from the Indian Agriculture department, the total sown area as on 5^th August, 2016, stood at 885.29 lakh hectare as compared to 841.65 lakh hectare at this time last year, up 5%.  Rice has been sown/transplanted in 281.95 lakh ha, up 2%; pulses in 121.10 lakh ha – up by 35%; coarse cereals in 163.77 lakh ha, up 3%; oilseeds in 167.58 lakh ha, up over 6% though sowing of sugarcane, cotton and jute remains low.

Rajan delivered his last credit policy and now the market knows, till October at least there is no rate cut to look forward to.

As of now, for the market, there is really no major positive trigger or a horizon to look ahead to. It is just sailing and currently it is getting tossed around in the rough sea.

The market was OK till morning but the slide started after noon, briskly sliding over 200 points. The reason for this sudden sell off?  Blame it on the USA economy.  Yesterday, the US Labor Department there released data – a third consecutive quarter of falling productivity and said to be the longest such continuous fall since 1979. Its nonfarm business productivity, which is essentially all the goods and services produced by Americans during Q2, decreased 0.5%. Productivity in the second quarter was down 0.4% from a year earlier, the first annual decline in three years.

This news is now being read as – no rate cuts in 2016. Many reports and news analysts have ruled out the Fed cutting rates any time this year. Post this, today morning, U.S. dollar sagged against the euro and the yen and U.S. Treasury yields fell.

This has pushed down the overall sentiments on the street – the lower US productivity for Q2 and lack of any new positive trigger. The Fed meet is scheduled for September so in this entire month, as of now at least, there is nothing major expected. Yes, we have the GDP numbers for India coming on 31^st August but that again, we have to take with a pinch of salt.

Thus lack of any trigger has led to profit booking on the bourses today. Sometimes, even in life, after months of chaos and confusion, we come to a phase of reassessment and quietude. Maybe this is such a time for us on the markets. Just sit back and relook at the stocks you have, realign your portfolio.

The Indian economy remains robust and we are sure to see a takeoff in second half. Let’s keep that faith intact and not panic, rushing to sell every time the markets fall. It’s an auspicious month, heralding the coming of festivals; good times will roll soon!  Let’s not forget – good monsoon and 7^th Pay Commission will fuel economic growth.