Technical Analysis of Indian Equities by Nooresh

2011 was Bad — Some interesting observations on Indian Stock Markets

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.


Happy Investing,


Nooresh Merani

Article by Nooresh Merani

Nooresh has written 2807 articles.

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{ 4 comments… add one }
  • JAGDISH K MODI December 22, 2011, 14:57

    hello sir longterm ke liye smartlink kesa he target kya hoga 3 years ke liye mere pass
    500 share he

    • nooresh December 26, 2011, 14:46

      Its good only for long term.

  • Stable Investor December 23, 2011, 01:40

    2011 has been a forgettable year for equities. But if cash is combined with courage in this crisis and someone is ready to take bold calls, next few years would offer phenomenal returns.

    • nooresh December 26, 2011, 14:46

      Yes its a time to be selective and convinced.


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