Weak GLOBAL markets, heavy selling by foreign institutional investors (FIIs), slowdown in the domestic economy and a tight monetary policy in the first half of 2008-09 have worked towards making 2009 the second worst year for Indian equities in three decades.
In 2009, the 30-share sensitive index, Sensex, fell 36 per cent. The index recorded its worst fall in 1993 when it crashed 47 per cent, according to a report by Motilal Oswal Financial Services Ltd (MOFSL). The index, however, recovered 66 per cent in 1994.
Another highlight of 2009 has been a 27 per cent depreciation of rupee’s value against the US dollar.
The report said the company expects oil refining and marketing companies to report profits due to the issuance of oil bonds. The company predicts most sectors to report either a decline or single-digit growth in earnings, with just 3 out of 16 sectors reporting double-digit earnings growth.
The report also said that the estimated real GDP growth of 6.7 per cent in 2008-09 is led by a strong domestic consumption. Sectors that had reported significant drops in business momentum in the third quarter of 2008-09, have witnessed strong recovery in the fourth quarter.