Finesse: July-October 2011
- Equity markets declined sharply during the period from July 2011 to October 2011. The BSE Sensex shed over 6% but the financial services sector was hit much harder – the BSE Bankex declined by 10.7% while EYIFSI index lost even more to end the period down 11.9%.
- Domestic concerns driven by rising interest rates, which have begun to hurt corporate performance, coupled with pessimistic cues emanating from global markets, continued to weigh heavily on the markets. The Sensex closed below 16,000 mark on 26 August 2011, marking the fifth consecutive week when the markets ended in red, its longest losing streak since October 2008.
- Thereafter, the markets remained largely range-bound through September but again declined sharply in the first week of October 2011. The Sensex closed at 15,792 on 5 October 2011 to register its lowest close since February 2010.
- The markets made a recovery in the remaining part of October to partially offset the losses. This was primarily driven by the expectations of, and the subsequent announcement of the measures to check the Greek debt crisis by the European countries.
Finesse July-October 2011