The US, Chinese and Indian stock
markets hit new intra-day highs over the past few weeks as global investors
responded to policy moves and expectations, as well as a rapidly declining oil
price. OPEC appears to be settling in to a long campaign to recover market
share and price leadership. This is good news for India, where the Nifty keeps adding points. Average daily trading volumes at $3.7bn continue to drag the trailing
average upwards as FIIs bought a bet $502mil and this while domestic institutions sold a
net $357mil. Breadth was narrow,
with advances just ahead of declines but concentration was evident, with the
FMCG sector a big contributor: ITC and HUL together worth just 16% of the
Nifty, contributed 87 points on the upside. HDFC and Reliance, together worth 9% of the index, dragged
it down by 27 points. Volatility continued to subside, with the India VIX
trading mostly down from its opening at 14, hitting 9 before closing at 12.
Nifty futures closed at a premium of 1.6% to cash.