Stock Market Risks and Benfts

Assets managed by Indian mutual funds by the end of Cctober, compared with Rs 1.48 trillion seen in October 2004, according to the Association of Mutual Funds of India.

India’s merchandise exports fell for the 12th consecutive month in September. Exports during the first six months 2009-10, declined 28.5 per cent to $77.86 billion.

Redemptions from global emerging markets, Asia, Latin America and Europe, the Middle East and Africa stock funds contributed to the net outflows for all equity vehicles during the week ended November 4, according to fund tracking firm EPFR.


Gold for immediate delivery reached an all-time high on November 9, as expectations for record low borrowing costs in the US drove down the dollar, and the Indian government’s bullion purchase last week raised speculation that other countries will follow suit. Gold jumped 5.2 per cent in October as the Dollar index slumped 1.3 percent.

The Federal Open Market Committee of the US voted 10-0 to maintain the target federal-funds rate for inter- bank lending at a recordlow range of zero. Since the financial crisis began in 2007, the Fed has slashed its benchmark lending rate from a peak of 5.25 per cent to its current level near zero in December 2008.