Indian Economy – Review and Analysis, November 2009
First of all sorry for the delay in posting October’s monthly economic review. This is the third review in the “Economic review and analysis” series bought to you by MoneyBol every month. Hope this is useful to you.
SENSEX
After massive fall witnessed during October, equity markets paired the gains during first half of November and remained upbeat for the rest of the month. Index rose 12% from its monthly low to reach a high of 17,290. Dubai crisis led to sell off at the end of the month. MoM markets rose by 6% to close at 16,926.

10 year Benchmark G-Sec Yields
Yields were relatively quite after a hectic October. Yields rose following upbeat IIP data at the start of month but in the later part of the month finance minister’s comments about retaining fiscal stimulus and absence of any new issuance of securities by Govt kept yields under check. On a monthly basis, yields touched a high of 7.38 during the month and closed at 7.257, 4 basis points lower than last month’s close.

USDINR Exchange Rate
Rupee resumed its strengthening spree after a pause during second half of last month. First half of the month saw rupee touching a high of 45.7 gaining strength from good industrial production numbers. It closed the month at 45.51, 39 paise above last month’s close of 46.90.

Gold
Gold remained bullish throughout the month and touched its all time high of $1,227/Oz buoyed by the comments of central banks around the world to keep the interest rates steady. Gold prices for January delivery on Comex of US rose 13.3% for the month from $ 1,040/ Oz at the close of October to $ 1,181/ Oz.

Crude Oil
Crude oil prices started the month on a bullish tone to touch a high of $81.06/barrel but soon ran out of steam and remained range bound to bearish for the rest of the month. Good stock piles of USA and lack of demand contained the prices. Crude for December delivery closed at $77.28/ barrel, 28 cents more than last month’s close.

Author: Praveen Bajaj, B.Com(H), MBA (SCMHRD)
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