THE YEAR THAT WAS.......

2009 WAS A ROLLER COASTER!! LETS RECAP SOME OF THE HI's & LO's OF 2009.....

JANUARY 2009
The year 2009 started with a positive wave when Indian Government in tandem with RBI, announced the much-awaited Second Stimulus Package, aimed at reversing the economic slowdown.The government eased the foreign borrowing rules for firms, mostly in the infrastructure and real estate sectors, and raised the foreign investment limit in corporate bonds to $15 billion.
The aftermath of Satyam Scam were dragged in the month of January and Indian key indices lost ~2.5 % on the back of a scam that raised questions over the corporate governance issues & financial credibility of the companies.


FEB 2009

As per the Index of Industrial Production (IIP), India's factory output has condensed to a record 15-year low of 1.2% in February 2009 on a Y-o-Y basis as against 9.5% growth in February 2008.India saw a big jump in local car sales by 34% on Y-o-Y basis.The global recessionary trends emerged large over the market sentiments with Sensex shedding 5.7% & Nifty losing 3.87% in February.

MARCH 2009
The global recessionary trends took a breather amidst a slew of Revival Packages from all major economies across the globe. So did the Indian markets and they ended the March month on a positive note gaining 9%.


APRIL 2009
India Inc. reported its quarterly & yearly results, which were better than expected. The month saw strong FII inflows.But in the later half of the month, Swine Flu was declared.In US, the automobile manufacture Chrysler LLC filed for bankruptcy.
The March month?s positive vibes influenced the April month also and Indian markets gained 17% during the April month.


MAY 2009
The biggest news in May was the Return of UPA government to powerin the 15th Indian general election. The victory was followed by first ever double upper circuit on the markets in the history, with key indices gaining 28% in the month of May. The FII recorded a net inflow of Rs. 13,886 crs in the month. But in this month, India also confirmed first cases of (A) H1N1 influenza.


JUNE 2009
June came with some bad bunch of news around the world. In India, Indian weather department declared delay in monsoonand stock markets saw FII outflows. On the whole, the market closed on a negative note. In US, General Motors filed for bankruptcy, then the first quarter GDP decreased at annual rate of 5.5 percent


JULY 2009
July month saw a good quarterly earning numbers and huge overseas inflows. GoI also announced the financial sector reforms and stake sale in PSUs in order to raise funds.


AUGUST 2009
On the economic front, the India`s GDP grew to 6.1% in Q1 June 2009, that was lower than 7.8% achieved in Q1 June 2008 but it was better than the 5.8% expansion witnessed in Q4 2009.
There was a sharp surge in food prices in the August due to scanty rains that might stoke inflationary pressures in the economy. But the revival in the monsoon rains cheered the prospects for rice and sugar cane. The weak monsoon led cut in kharif crop production by 18%.BSE also launched its IPO index, (which will track companies with a free-float market capitalization of at least 1 billion rupees on listing day.)On the whole, the Indian markets closed on a flat note.


SEPTEMBER 2009
India’s exports fell by annual 19.4 per cent in August Vs 28.4 per cent in July as demand for merchandise picked up in the big global markets ahead of Christmas.Interest rate futures was reintroduced, which was a significant step towards developing the debt market in India.


OCTOBER 2009
India recorded a positive set of IIP numbers to 10.4%, which were above the expectations.The traditional pre-Christmas sell-offs by FIIs had advanced by a couple of months this year. India Inc also saw poor corporate results from some of the giants. The markets shed over 7%.


NOVEMBER 2009
The IIP numbers, India’s industrial output, grew 9.1% in September from a year earlier, helped by fiscal stimulus and festival demand adding to the debate on the timing of exit policy.
Another interesting and a positive number was India’s strong GDP data that cheered the investor sentiment that the economic recovery is gaining momentum. India’s economy grew at a spectacular 7.9% in the July-September period, up from 6.1 % in the previous quarter, bolstered by government stimulus measures and rising industrial production. The growth compares favorably to 7.7 % recorded in the July-September quarter in the previous year.
NSE launched a platform for trading mutual fund units, called Mutual Fund Service System on?Nov. 30?for trading mutual fund units
Overall, Indian markets gained 7% in this month.


DECEMBER 2009
Gold made its life time high at $1,226, other commodities like sugar also made its high in the Indian markets at ~$8.5.
India witnessed the IIP numbers at 10.3%, which were below the expectations of 12%.
Till now, from Jan 2009 to till now, Indian key indices have seenan increase of 72% in its value.
The news of $80billion Dubai debt default came. The market expected it a second wave of recession.