(The views expressed in this column are the author’s own and do not represent those of Reuters)

March 2011 retrospective in summary

MSCI India outperformed the global indices for the first time in March 2011. In March, India emerged as the second best-performing market (after Korea) in the world. Although, year-to-date and on a six-month basis, India’s ranking is still among the bottom five (at 17th position) in emerging markets. Mid-caps and small-caps underperformed the Sensex for the fifth month in a row. Telecoms and consumer staples were the best- and worst-performing sectors, respectively. FIIs turned buyers of stocks. Domestic mutual funds remained buyers for the fourth consecutive month even as insurances companies turned sellers of stocks. Breadth gained 20 percent during the month. Volatility reached its highest level since Nov 2009.

FY 2011 thus far: key highlights

(The views expressed in this column are the author’s own and do not represent those of Reuters)

The FY 2012 Union Budget is largely a neutral event:

The Budget provides incentives for increased infrastructure spending along with increased funding sources while highlighting supply side issues in agriculture with an effort to provide solutions.

(The views expressed in this column are the author’s own and do not represent those of Reuters)

The Union Budget is likely to look into the following themes: (a) Deficit reduction plan; (b) Measures to boost investment sentiment, particularly for the infrastructure sector; and (c) Redistribution focus to support lower income segment households.

(The views expressed in this column are the author’s own and do not represent those of Reuters)

2010 was the year of the “E”s. Equity markets across the world delivered positive returns in 2010, even though sovereign issues in Europe caused periods of market volatility.