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Monday, January 2, 2012

Performance of various sectors in the year 2011

Year 2011 was not at all favourable for the Indian capital markets, barring the FMCG all other sector ended in red. Rising fiscal deficit coupled with rising interest rates amid global financial turmoil took its toll and there was a huge redemption from India specific funds.
To conquer the domestic redemption pressure abroad, global fund houses were forced to sell their investments in the emerging markets especially in India.
Global funds outflow not being compensated by domestic buying resulted in Indian markets going down.

Barring FMCG, all other major sectors ended in red.
FMCG which is considered as the safe haven during the time of turbulence witnessed the cautious buying and managed to end in green.
Realty sector was the worst hit sector due to the higher interest rate regime. PSU banks having large exposure to interest sensitive sectors too were beaten hard. 


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