I was reading a few reports of Foreign broking firms. Some important notes out of it for the year 2011
Trading activity was marked by strong volumes in derivates markets (at record levels), even though the cash turnover fell to a seven-year low, and, compared with % of market cap, it was at its lowest level in history. The share of options trading to total derivatives trading climbed to 75% vs. 68% in 2010 and 52% in 2009.
After a tough 2010, domestic fund managers received inflows in their equity as well as fixed income funds.
India’s absolute P/E multiple fell to 2009 levels, although on relative valuations India is trading above 2009 levels.
Market Cap (US$ billion) Lowest level since Sep-2009
Equity MF AUM Lowest level since June-2009
Total trading volumes At record Levels
Cash trading volumesAt a seven-year low
Derivatives trading volumes At record Levels
Options trading volumes Share in derivatives trading risen to 76% from 68% (in 2010) and 52% (in 2009)
BSE Sensex Second-worst yearly performance in history
Trading Activity in ‘11: Options Trading Account for 3/4ths of Total Derivatives Trading
Volatility in ‘11: Hedging Activity at Record levels
Market Cap/ GDP At 08-09 levels
Trade Balance Deficit approaching 2009 levels
Forex Reserves At record levels
BrentRemains above US$100/bbl for most of 2011
Lets Hope that by 2012 end we have better things to talk though start of 2012 can be really dicy.