Quatre-Bornes.com wishes all our readers a Happy and Prosperous New Year 2012. We sincerely hope that this new year will bring you and your family all the best of everything including a good health which is vital these days. To all the regular posters, whether we agreed or disagreed, annoyed or complimented, Happy New Year. Lets hope 2012 is a good year for all. … This is our sincere wish and we hope to write better articles and better information for this year hopefully. As we promised in 2011 that we would give something different and we are doing it now that this year we are hoping for the best hopefully we will bring some great things in quatre bornes portal.
The dawn of every year brings with it the hope that all the wrongs of the previous year will be corrected and this time it will be different. After all it is another year. As we stand at the threshold of 2012, we could do with such optimism and dollops of it.
For things couldn’t be messier, locally and globally. Euro zone’s debt woes seem to be nowhere close to resolution. Default by Greece, Italy et al is still possible and what that can do to the credit market and global equities is enough to give us sleepless nights. Global economic growth is contracting again. Government is in a policy paralysis. Domestic corporate earnings are set to slow down further. The list of woes is endless.
That said, the drubbing received by Indian stocks in 2011 can be a point in its favour. It could limit the downward risk in the year ahead though chances of a runaway rally are remote. Reversal in interest rate cycle, weakening commodity prices and thriving domestic consumption may be some of the other positives for our stocks in 2012.
When 2010 ended, the Sensex and the Nifty were perched close to their life-time peaks. But despite rest of the global benchmarks recording a strong first quarter, Indian equities decoupled from their global peers to emerge among the worst performing markets in 2011.
FIIs were active in the Indian market but though some months witnessed FII outflows, inflows in other months largely offset this, resulting in net outflow of a mere $357 million. Volumes in cash and derivatives were muted through the year and open interest of futures and options remained below the highs recorded in the last quarter of 2010.