31st Dec: India the worst

Number says everything. Indian is the worst performing index in the Asia pack. Nifty and Sensex had slipped down 25% in the year 2011. Where is Indian markets heading towards? India with all the negative news are not going to go higher. Inflation still a problem. Political issues are the main cause for the Indian downtrend. Reality was amongst the worst returning assets this year.

Over all the 2011 have really bad. Rupee slipped to its all time low. Indian Rupee has turned out to be one of the worst performers among the major currencies vs the Dollar. FII flow has dropped to its low. Even after increasing the trading time in India, volumes have not increased but infact the volumes have decreased. There is a long list of the scams that have unearthed in this year.

Indian markets collapsed nearly 25% this year, counting as the worst performing Index in whole Asia. Reality Index collapsed more the 50%,Metals 47%, Bankex 33%, IT Index 18%, Small Cap 43%, Auto 20% & Oil and Gas index closed down 30%. This year was not only bad for the Equity market but the commodities markets also made many losers. The only commodity which gained is gold which closed higher by 11%. Silver after its absurd rally corrected 10%, Copper 21%, Cotton 36%, Sugar 22%, Wheat 20%, Zinc 25%, Tin 30%

There are end numbers of companies which have lost more the 75% of their market capitalization. Stocks like Gtl, Adsl, Jai Balaji, Arss, Ksoil, Sks Micro, Lanco Infra, Triveni Eng, Spice Jet, UB Holding, Infotech lost in the range of 80-90% of the market capitalization.

Companies which lost in the range of 60-80% are ICSA, Gtl Infra, Jet, BGR Energy, Moser bear, Dishman Pharma, NCC, First source, Bajaj Hind, DB Reality, Guj Nre & Essar Oil. Ril Infra, Ril Power, Ril Com after all the bad news has fallen down 55% each.

Sail, Hindalco, Sesa Goa, Tata Steel, JP Ass, Lnt, Bhel, Idfc, Icici bank, Axis bank, United Spirit lost in the range of 40-60%.

Pnb Bank, Tata motor, Maruti, DLF, Ntpc, Jspl, Tata Power, Bpcl, Ril, Ongc Wipro, Gail, Jubilant Foodworks, Godfrey Philip, Marico & Supreme Ind sinked from the range of 20-40%.

Nifty closed down at 4624 levels which is well below the 4750 mark. In my last few articles also I had mentioned that the Indian markets are not going to rally. We may see 4400 levels also in the coming weeks as the scenario in the Indian markets are going bad to worst. In the chart we can clearly see that the Nifty made the same pattern before also and had triggered more selling in the market and fallen down till 4640 levels. Recovery is still far. We may see levels near 4000 levels also.