2009: An year of equities
Stock market indices not only in India but across the globe also witnessed an upward trend during calender year 2009. Stock markets and commodity markets rallied during the period.
STOCK MARKET indices not only in India but across the globe also witnessed an upward trend during calender year 2009. Stock markets and commodity markets rallied during the period. Calender year 2008 witnessed the worst financial crisis in modern times. Beginning of the year 2009 was the passing phase of the recession. Within no time indices all around the world staged a comeback and during the second half of year 2009 they all remained in the bullish phase.
So many policy changes including time change happened in Indian market. From 4th January onwards the new time schedule came into effect. The bourses will open at 9.00AM and will close at 3.30PM. In the days to come there would be more policy changes. Leaving all odds behind one can surely says that Indian market is growing faster than any other market in the world. Equities were the worst performing asset during 2008 but it bounced back in style in 2009 and became the best performing asset. Last week of December witnessed bullish rally in Indian stock market. In December Indian market was slightly volatile. Less than expected IIP figures were one negative factor behind the volatility soaring food and commodity prices added fuel. But when reached towards the end of 2009 investors started buying Indian stocks. Apart from stock market Mutual Fund and Insurance sector also witnessed drastic changes. SEBI abolished entry load in Mutual Funds which attracted severe protest from fund houses. SEBI also allowed exchanges to trade in Mutual Fund units. These were the major reforms in the Mutual Fund industry during 2009. In December Mutual Funds sold Indian equities woth 1515.60 crore. IRDA also made some changes in Insurance sector. The major one is the implementation of a cap on the expenses of the ULIP plan. Another one is allowing life insurers to sell policies online. It is believed that these moves will protect policyholder's interest.Sensex closed the year at 17465.It's November closing was 16926-an increase of above 3 percent. FII inflow continued in December also. They bought equities worth 10233.10 crore. Nifty also recorded a growth rate of 3.3 percent against it's November closing to close at 5201. From index stocks now the buying interest came down to midcap and smallcap stocks. This is a good sign for Indian market. Smallcap stocks recorded a growth rate of 11 percent during December whereas midcap stock's growth rate is at 4.7 percent against November 2009. Recovery in global markets also influenced Indian traders. US markets recorded biggest annual gain since 2003 in 2009. IT and Consumer Durables witnessed major buying interest during December. They recorded 9 percent and 8 percent growth respectively. Power, metal, auto and engineering stocks also witnessed renewed buying interest. Oil and gas sector was the least performing one during December.2009 proved the strength of equities. It is believed that increased trading time would attract more participants to Indian market. Market volume would increase. Inflationary pressure is the major concern now. There are rumors that there will be some changes in key rates in order to tackle inflation. More and more traders will be attracted towards midcap and smallcap stocks. Invest in stock markets with long term plans is the need of the hour.
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