New Delhi, Aug. 24 -- Dear Reader,

Last week I wrote that markets would gravitate towards fundamentals even as they remain hard wired to seek bullish triggers. While the market opened for the week with a bullish gap, higher levels witnessed profit taking. That not only capped gains but triggered selling in large enough numbers to force a weekly close at almost the lowest points of the weekly range.

Like I pointed out last week, the optimism over lower goods and services tax (GST) rates cheered traders initially. Spiking sovereign bond yields triggered a mini selloff in banking stocks. With the highest weightage of 37.86% in the Nifty 50, this sector commands a weightage higher than the next four heavily weighted sectors combined. There ...