22 Jan 2015

Silver Jubilee, 25 years Himalayan Fund

Himalayan Fund NV enters its silver jubilee year and India embarks on a period of sustained monetary easing. So far this year, the Nifty has already added 253 points or 2.8%, rising to 8514 after trading in a range of 5.8%. FIIs were in two minds at first: heavy sellers as negative Euro sentiment was driven by political uncertainty in Greece and doubts about benefits from the slide in the oil price prevailed; then buyers again after the RBI’s surprise cut in interest rates. Domestic investors mopped up the modest supply of stock. Average daily trading volumes stayed at about the rolling average of $3.2bn. Market breadth was neutral, with advances just a touch above declines overall. At first, FMCG stocks led the points’ contributions on the upside but later this was balanced by financials on the back of interest rate cuts. Volatility has established a higher base this year as the India VIX traded up from the low teens, hitting 19 before closing at 17 for a gain of two points. Index futures closed at a premium of 1.4% to cash as the markets anticipate moderately good results to reinforce monetary easing as the driver of momentum.

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