December 2009 saw increased volatility in markets with benchmark NIFTY gaining in the latter half of the month. The end of year/holiday season ended with the NIFTY closing above the psychologically important 5200 level. There is limited support for markets at this level and in the month ahead corrections are expected. Oxus fell 5% as did other comparable funds. There are several cross currents facing the market in 2010. There is expectation that sometime during the year the monetary and fiscal stimulus will be removed; this will come earlier than later. This will put downward pressure on stock prices. Conflictingly, growth and earnings are expected to accelerate. The final resolution? Watch this space!

Performance as on December 31, 2009