2013 - The year that was

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As we approach Muhurat Trading Day, here’s a look at how the year went for FIIs, mutual funds, corporates & the Reserve Bank of India.

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  • Kotak Securities one of the largest share broking firm in India brings you various outlook from Indian share market for the year 2013. Learn how did this year performed for various investors and market. For more such market outlook visit our blog kotaksecurities.blogspot.com or our website www.kotaksecurities.com
  • 2013 - The year that was

    1. 1. Demystifying was 2013 – The year that Stocks
    2. 2. Looking Back •Diwali holidays bring with them an opportunity to take a step back. This is a good time to look back at events that influenced investments in the year gone by. Developments in 2013 give a peek of challenges that lie ahead for Indian stock markets. •Benchmark indices have not changed much as compared to the beginning of the year 2013, despite a slow economic and corporate profit growth.
    3. 3. How FIIs Behaved in 2013 •Foreign Institutional Investors invested over $ 13bn in 2013 in Indian equities. FIIs have hung on to their investments despite a 10% fall in the value of the rupee and their investment, witnessing the value of their portfolio decline 10% as a result. •It is possible that FIIs would continue to bring in the money. But we will have to contend with uncertainties over US debt situation and Fed taper in the near term.
    4. 4. Looking At Mutual Funds •Domestic Institutional Investors have been net sellers to the tune of $8bn in 2013. This indicates that retail investors in India are taking the money out of the stock market. •Equity as an avenue for investment fell to 4% of overall individual savings in 2012-13 (as mentioned in the RBI Annual report 2012 – 13). RBI data suggests that it has been falling consistently for two decades.
    5. 5. Corporate Performance •The year saw companies that earn revenue in foreign exchange perform better in the stock market as the rupee tumbled. Top performing companies in 2013 were from technology and pharmaceutical sector. Automobile sector companies like Tata Motors, that receive most of the revenue and profit from Jaguar Land Rover operations overseas, outperformed. •The sluggish trend in the macro-
    6. 6. Performance of the Macro-Economy •The Rupee’s fall due to a high current account deficit remained the dominant theme on the macro-economy front. Inflation was another highlight of the year. •As India’s exports growth struggles due to the slowdown in export markets, consistent high imports (crude oil, etc) increase the money India owes the world. This created demand for more US dollars and less for rupees resulting in the sharp fall in the rupee. •International agencies like World Bank and IMF have cut India’s growth forecast to close to or less than 4% per annum.
    7. 7. Reserve Bank •The Reserve Bank of India has battled high inflation through the year. It has held lending rates firm in 2013 to combat the surge in the inflation. This year Dr. Raghuram Rajan took over as the new governor of RBI from D Subbarao. •India needs to manage high growth and at the same time keep inflation low. It’s a challenge for the new governor.
    8. 8. Thank You Read More Twitter Website Facebook
    9. 9. Disclaimer: Kotak Securities Limited, Registered Address: 27 BKC, C 27, G Block, Bandra Kurla Complex, Bandra (E) Mumbai 400 051. Correspondence Address: 6th Floor, Kotak Infinity, Building No. 21, Infinity Park, Off Western Express Highway, General AK Vaidya Marg, Malad (East), Mumbai 400097. Tel no: 66056825. SEBI Registration Numbers: NSE INB/INF/INE 230808130, BSE INB 010808153 / INF 011133230, OTC INB 200808136, MCX-SX INE 260808130/ INB 260808135/INF 260808135 , NSDL IN-DP-NSDL-23-97, CDSL IN-DP-CDSL-158-2001, AMFI ARN 0164. Compliance Officer - Mr. Sandeep Chordia. Tel. No: 022 6605 6825. Email id: ks.compliance@kotak.com. In case you require any clarification or have any concern, kindly write to us at below email ids: • For Trading Account related queries: service.securities@kotak.com • For Demat Account related queries: ks.demat@kotak.com. • • Alternatively, you may feel free to contact our customer service desk at our toll free numbers 18002099191 or 1800222299. You may also call at 30305757 by using your city STD code as a prefix. In case you wish to escalate your concern / query, please write to us at ks.escalation@kotak.com and if you feel you are still unheard, write to our customer service HOD at ks.servicehead@kotak.com.

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