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The Market Moods and the Sensex

In 2012, the market gained momentum after several reformist announcements made by the government…

We ended 2012 much stronger. On January 2, 2012 the Sensex was at 15,535 points and on December 24, when the January 2013 issue of Wealth Insight went to print, the Sensex has touched 19,242, a clear gain of 24 per cent. The mood of the market was sombre in the first half of 2012, but gained momentum following several reformist announcements made by the government.

1. February 21
The Sensex touched 18,428 on news of the European finance ministers reaching an agreement on the $170 billion bailout package for Greece to shield from sovereign debt crisis

2. March 22
Insipid Budget, Congress’ loss in State elections resulted in the 5 per cent stake sale by the government in ONGC where it struggled to garner the Rs 12,000 crore target, adding to the slide

3. April 25
S&P lowers India’s outlook from stable to negative, further dimming the mood of the market. Another agency, Fitch, downgraded India’s outlook two months later

4. June 22
The rupee hit its all time low of Rs 57.37 against the dollar and a week later Barclays admitted to manipulating the LIBOR

5. July 26
The Sensex loses heavily on weak monsoon predications, though the corporate mood is revived with Pranab Mukherjee’s elevation as President

6. August 16
Markets go up with Sebi’s mutual fund and IPOs regulations, which mentioned higher minimum investment and a minimum guaranteed allocation to retail investors

7. September 13-14
Markets cheer the government announcement on increase FDI in Airlines, Pension and Insurance sector to 49%

8. October
Kingfisher Airlines faces suspension by the DGCA on back of the Rs 8,000 crore debt burden and failure to make payments to creditors and employees

9. November
Gold prices hit an all time high of Rs 32,950 per 10 gram. Sebi directs the Sahara group to furnish all documents relating to refund Rs 24,000 crore to investors

10. December 7
The government allows 51% FDI in multi brand retail and opens the country to global retailers. The year-end also witnessed high FII inflows which crossed Rs $22.22 billion