Readers, as promised, we have posted the market review for February without delay this time. Month of February witnessed the most important calendar event for Indian economy, the Budget 2010. Our reports on the same would have kept you updated. Hopefully this will update you about its affect on various markets.

Equity

After correcting for most part of January and early February, Sensex touched a monthly low of 15725 on Feb 5 and thereafter gained strength from positive news on the budget front. It touched a monthly high of 16669 on the day of budget and closed the month at 16429, about 2 % above the last month’s close and 4.5% above the monthly low.

Rupee

Taking over from the appreciating trend in the last month, rupee weakened in the first week to touch a monthly low of 46.94, loosing 110 bps in 3 trading days. But post that, appreciation again set in and buoyed by the bullishness in equity markets, rupee closed the month at 46.08, marginally up from last month’s close of 46.12.

G Sec yields

After moving in the range of 7.57 to 7.72 for the month of January, the yields on 10 year benchmark 6.35% 2020 bond surged during February. Yields touched a high of 7.96 during mid feb and thereafter corrected to rise again during the budget following announcement of market borrowing of Government for the year 2010-11 which were in line with expectation. Yields closed the month at 7.86 against a close of 7.58 for January.

Gold

Gold futures on COMEX for March delivery which fell in the later half of January were in red in the beginning of February as well under the influence of better than expected economic numbers of USA. But since second week of February, after touching a monthly low of $1,044.50/ Oz, gold prices started moving up and touched a high of $1,131.50/Oz before closing the month at $1,118.90, 3.3% above last month.

Crude Oil

Crude oil for March delivery on NYMEX continued its downward journey carried over from the month of January and touched a low of $69.50/ barrel. But with optimistic numbers from US, economic recovery seemed to gain strength and prices started rising touching a monthly high of $80.78 before closing at $78.84, 9.2% above the January levels.

Author: Abhijit Ahir, Economic Analyst, MBA Finance (SIIB)

Related posts:

  1. Indian Economy – Review and Analysis, January 2010
  2. Indian Economy – Review and Analysis, November 2009
  3. Indian Economy – Annual Review and Analysis