It was a welcome sign coming in times of high volatility and uncertainty going on in financial system the world over. The inflation figures for the week ending Nov 22 stands at 8.4% as against 8.84% in the previous week. This is mainly due to fall in prices of petroleum products due to fall in crude oil prices internationally. Crude oil also has fallen to $46/barrel now.

Reacting to this the Indian share markets bounced back from a flat opening today. The hopes of rate cut was also a big reason for the markets to react in a positive manner. Sensex gained 5.51% or 482 points to close above the psychological 9000 levels at 9230 levels. Nifty also gained 132 points to close at 2788 levels. Meanwhile RBI also indicated today towards rate cut to maintain liquidity in the financial system.

Some of the major gainers of the day included JSW Steel,HDIL,India Bulls Real estate,Unitech,Tata Motors,JP Associates,Tata Steel,Sterlite and DLF.

There were also some news from SEBI unveiling new Mutual Fund(MF) and IPO norms. Some new guidelines were announced in the meeting today. It included:

1.There will bot be any early exit on close ended Mutual Fund(MF) schemes from now onwards.

2. All the close ended Mutual Funds (MF) operating must be listed. They are applicable for newly launched schemes only.

3. In the IPO section, SEBI has increased the validity period of initial public offering(IPO) from three months initially to one year from now onwards.

4. And the companies bringing the IPOs can use the funds only after the allotment is done. And the shareholders will now be getting the rights shares in demat form.

But going forward into the month of December,things would turn bearish in the coming days. The current rally would hardly sustain for a few days and then we can see a correction of 25-30% from here in December and January. We can always do some value buying in certain counters in these levels and book profits at higher levels. Nikkei-225 closed 1% down today and also Hang Seng which closed 0.6% down. The European markets are trading flat after a initial upward movement.

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