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!

Globally, markets fell in October, in line with the persistent demand for a correction.  The benchmark Nifty index fell 7.3%; Oxus outperformed by falling only 3.8%. In contrast to the market, real activity data, around the globe, is confirming that the global recovery is for real.                                                                                                                                                                                                                                 It remains to be seen how much more the correction continues. As far as Indian markets are concerned, there is strong support for the Senseex between 14700 and 15300.  The market moving US payroll data will be released on Friday - something to look out for.

The NIFTY gained 3% in August amid increasingly optimistic
outlook for global and domestic growth. Economic data and
corporate newsflow continued to remain positive - US non-farm
payrolls exceeded expectation, France and Germany seem...