Industry chamber Assocham expects 2014 to be a better year for the stock market. “With hopes of a stable Government and improved business climate, 2014 is expected to be a much better year for the (stock) market,” said D.S. Rawat, Secretary-General, Assocham.
Sensex returns 10%According to an analysis done by Assocham, investors who had stood invested in the Sensex for the entire 2013 may not have been disappointed. This is because the benchmark BSE Sensex had gained more than 1,653 pointes over the past 12 months, resulting in a return of about 10 per cent.
The story holds true for those who had decided to ride with the Nifty 50 for the entire 2013.
The Nifty index reached as much as 6,415 points in December and gained nearly 370 points in 2013, compared with the closing level of 5,905 points last year.
The overall market capitalisation has jumped by Rs 20,000 crore during 2013.
While Indian stock markets gave seemingly healthy returns in 2013 for the patient investors, only a few retail investors may have made most of this upside.
Foreign investors continued to remain a key driver for the Indian equities market even though the market witnessed wild swings occasionally amid uncertainties over political developments and reforms activities, said Rawat.
Notwithstanding concerns about the investment climate in the country, FIIs put in at least $20 billion in 2013.
In 2012, FIIs had pumped in more than $24 billion, Assocham said.
In recent years, the highest overseas inflows into the stock market were witnessed in 2010 when the amount of such money reached about $29 billion, the chamber said.
There are more than 1,740 registered FIIs in the country while the number of registered sub-accounts stands at around 6,400, the study said.