2011 was Bad — Some interesting observations on Indian Stock Markets

I was reading a few reports of Foreign broking firms. Some important notes out of it for the year 2011

 

Trading activity was marked by strong volumes in derivates markets (at record levels), even though the cash turnover fell to a seven-year low, and, compared with % of market cap, it was at its lowest level in history. The share of options trading to total derivatives trading climbed to 75% vs. 68% in 2010 and 52% in 2009.

 

After a tough 2010, domestic fund managers received inflows in their equity as well as fixed income funds.

 

India’s absolute P/E multiple fell to 2009 levels, although on relative valuations India is trading above 2009 levels.

 

Market Cap  (US$ billion) Lowest level since Sep-2009

 

Equity MF AUM Lowest level since June-2009

 

Total trading volumes At record Levels

 

Cash trading volumesAt a seven-year low

 

Derivatives trading volumes At record Levels

 

Options trading volumes  Share in derivatives trading risen to 76% from 68% (in 2010) and 52% (in 2009)

 

BSE Sensex Second-worst yearly performance in history

 

Trading Activity in ‘11: Options Trading Account for 3/4ths of Total Derivatives Trading

 

Volatility in ‘11: Hedging Activity at Record levels

 

Market Cap/ GDP At 08-09 levels

 

Trade Balance Deficit approaching 2009 levels

 

Forex Reserves At record levels

 

BrentRemains above US$100/bbl for most of 2011

 

 

 

Lets Hope that by 2012 end we have better things to talk though start of 2012 can be really dicy.

 

Happy Investing,

 

Nooresh Merani

 

nooreshtech@analyseindia.com

4 Comments

  1. JAGDISH K MODI
    December 22, 2011

    hello sir longterm ke liye smartlink kesa he target kya hoga 3 years ke liye mere pass
    500 share he

    Reply
    1. nooresh
      December 26, 2011

      Its good only for long term.

      Reply
  2. Stable Investor
    December 23, 2011

    2011 has been a forgettable year for equities. But if cash is combined with courage in this crisis and someone is ready to take bold calls, next few years would offer phenomenal returns.

    Reply
    1. nooresh
      December 26, 2011

      Yes its a time to be selective and convinced.

      Reply

Leave a Reply

Your email address will not be published. Required fields are marked *


This site uses Akismet to reduce spam. Learn how your comment data is processed.