Money Bol

“Hello readers…warm wishes for the year ahead on behlaf of MoneyBol team. My apologies for delayed posting of the monthly update. To make amends I have also updated the yearly review. Hope these are useful and informative for you.” – Praveen Bajaj,

Equity- BSE Sensex

Stocks started the month with a 200+ points gain on the first day but later started retreating touching a monthly low of 16601. Towards the end, stocks regained bullish momentum and in 6 trading days zoomed 863 points to close the year 2009 at 17464, gaining 3.18% since November’09.

Stocks started the year 2009 with a pessimistic note amid fears of global recession. Consequently Sensex remained subdued in the beginning of the year and touched a low of 8047 in March, 1600 points down from 9647 as on December 31. While the world economy is still trying to recover from the slowdown, Indian stock markets picked up quite early and since March, stocks have been on a rising path. Sensex closed the year at the highest closing for the year, 17464, returning 81% since December last year

G-Sec yields

After remaining mostly range-bound for October and November, benchmark 10 year G-Sec yields witnessed selling which drove up yields to their yearly highs. Yields were rising since start of the month touching a high of 7.75% but thereafter retreating to close the year at 7.68%.

After witnessing huge buying in the second half of 2008 which drove the yields down to 5% on benchmark G-Sec, year 2009 saw yields rising since the beginning. Only a major correction was witnessed during the month of March when yields fell from 7.07% to 6.18%. Thereafter again yields continued their rising trend and closing the year at 7.59% after touching a yearly high of 7.75%.

USDINR

From the close of 46.51 on November 30, INR depreciated further to touch 47.06 as intraday high. But in the later half of the month, INR started appreciating steadily and closed the month at 46.40, 11 paise stronger than November.

For the year 2009, INR started with its continued depreciating rally from 2008 to touch the low of 52.35, but post march, INR went into an upward spiral driven by surging foreign flows and closed the year at 46.40, 4.48% stronger over December 2008.

Gold

After rising for the whole of November, Gold prices for February delivery declined during December. Prices were on a correcting mode all through the month and touched a low of $1075.2 per Oz from $1181.1 per Oz as on November 30. Gold closed at $1096.2 on December 31

As observed during December 2008, gold prices continued their upturn well into 2009 as well. From a closing of $884 in 2008, prices continued to move up through out the year due to recessionary fears in the US and touched a high of $ 1226 towards the end of year. Gold ended the year at $ 1,026 per Oz, rising 16% during the year.

Crude Oil

As observed during December 2008, gold prices continued their upturn well into 2009 as well. From a closing of $884 in 2008, prices continued to move up through out the year due to recessionary fears in the US and touched a high of $ 1226 towards the end of year. Gold ended the year at $ 1,026 per Oz, rising 16% during the year.

Crude oil prices started the year in the backdrop of huge fall from $146 to $44.6. The year 2009 saw prices stabilizing with a bullish tone. Crude touched a high of $81.99 in October. Subsequently prices reduced and closed the year at $79.36 per barrel, rising 78% during the year.

Related posts:

1. Indian Economy – Review and Analysis, February 2010
2. Indian Economy – Review and Analysis, November 2009
3. Indian Economy – Review and Analysis, October 2009
4. Indian Economy – Review and Analysis, September 2009
5. Infosys result analysis