After witnessing about 7% correction in the month of October 2009, the bulls attempted a comeback in the month of November 2009 with the markets re-gaining the 17,000 peak, only to witness profit-booking, once again, at these higher levels.
Nonetheless, it was the bull camp that had the upper hand as the Sensex managed to close the month with about 3% gains, which were cut sharply on the last couple of days as the Dubai debt crisis sent equities the world over on a downward spiral. While positive global cues supported the Indian stock markets for most part of the month aided by the Federal Reserve’s promise to keep interest rates low for an extended period of time; accelerated action on the divestment front in the country and better-than-expected IIP numbers helped investor sentiments.
The weakness in the Dollar Index has also been helping the flows away from dollar-denominated assets and into emerging markets. For the month of November, FII inflows were at about Rs5,000Cr even as domestic MFs continued to remain net sellers for the third consecutive month to the tune of Rs.500Cr.
Nonetheless, it was the bull camp that had the upper hand as the Sensex managed to close the month with about 3% gains, which were cut sharply on the last couple of days as the Dubai debt crisis sent equities the world over on a downward spiral. While positive global cues supported the Indian stock markets for most part of the month aided by the Federal Reserve’s promise to keep interest rates low for an extended period of time; accelerated action on the divestment front in the country and better-than-expected IIP numbers helped investor sentiments.
The weakness in the Dollar Index has also been helping the flows away from dollar-denominated assets and into emerging markets. For the month of November, FII inflows were at about Rs5,000Cr even as domestic MFs continued to remain net sellers for the third consecutive month to the tune of Rs.500Cr.
Going forward, while near-term consolidation in the market cannot be ruled out considering that December is generally a lackluster month on account of the festive season the world over (Christmas and New Year), the medium-to-long-term arguments for investing in Indian equities continue to remain strong.
1 comment:
Wonderful post.Great post i ever seen.Thanks for sharing.Keep Posting.
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