Downward movement in indices in the stock market

Dear Policy Holders,

There has been a lot of downward movement in indices in the stock market. However,HDFC Insurance has been able to out-perform the Nifty over the last one month in respect of 'growth fund' ie between 03/06/08 and 03/07/08 by a margin of 1.4% which is good in space of just one month. We may expect this feat from the company's fund managers over the next whole year and that way not gain very handsomely when the markets rebound.

The 'equity managed fund' has lost lost only 13.33 % value against Nifty's loss of 16.75% from 4715 to 3925 over the same period. In light of this there is no fear in sticking with the position at present.

Whatever is happening is on account of the high oil prices which would not remain high as has been seen over last so many decades and the normal times will return shortly. The result season is round the corner and expectedly the companies will be posting positive growth only in my expectation and when this will be practically seen by people the change in mood is bound to occur.

Hari Om

Krishna Kumar Khandelwal