Raghuram Rajan assuming the office of RBI as Governor in September and a strong showing by the BJP in assembly elections also contributed to stock indices breaking their previous all-time highs.
If 2012 was a year that saw Indian bourses scripting a dramatic turnaround after the meltdown, 2013 was marked by consolidation in the first half and a new found optimism by market participants in the second half.
While markets succumbed to decade-low economic growth, inflation, high interest rates, a widening current account deficit and a weak rupee for most of the year, a slew of positive factors led to change in sentiment thereafter.
The Federal Reserve, which had hinted at trimming its monthly $85 billion stimulus back in May, finally announced a $10 billion cut, helping the markets stabilise as a keenly awaited event was over.
After vacillating in a tight range for a major part of the calendar year, the BSE Sensex recorded a new intra-day high of 21,483.74 on December 9. In 2013 so far, the 30-share index has risen by 1,653.03 points or 8.5 per cent, from the 2012 close of 19,426.71. Last year, it gained 26 per cent.
In 2013, best performing bluechips include TCS (up 68.41 per cent), Infosys (53.22 per cent), Wipro (39.20 per cent), Dr Reddy's (37.21 per cent), Maruti Suzuki (21.56 per cent) and Tata Motors (19.41 per cent).
However, Jindal Steel tumbled by 44.01 per cent, followed by L&T (33.89 per cent), BHEL (27.52 per cent), SBI (26.51 per cent), Sun Pharma (21.31 per cent), Coal India (19.94 per cent) and Tata Power (17.90 per cent).
The 50-issue CNX Nifty of the National Stock Exchang e (NSE) also moved similarly to log a new intra-day high of 6,415.25 on December 20. It has gained 369.15 points, or 6.25 per cent, since its last year's close of 5,905.10.
In terms of market capitalisation, investor wealth rose by Rs 20,258 crore to around Rs 69.4 lakh crore across stocks.
However, second-line stocks underperformed the benchmark indices as retail investors preferred to stay away. The BSE-Smallcap and BSE-Midcap indices closed down by 14.92 per cent and 8.58 per cent, respectively.
IT, Pharma, FMCG, Auto and Oil&gas sector registered sharp to moderate gains while Realty, Consumer Durable, Power, Metal, Capital Goods and Banking posted losses.
FIIs - a key market driver - bought shares worth over Rs 1.1 lakh crore (nearly $20 billion) till December 19. Last year, overseas investors had pumped in Rs 1.28 lakh crore ($24.37 billion).
Market experts are of the view that stocks would have surged higher if it was not for recent weak I IP data and price rise, which dashed hopes of rate cuts to accelerate economic growth. Also, the weakness in rupee that slumped from 55 level to 62 versus the US dollar, hit sentiments, they added.
"The Indian markets had a pretty exciting year 2013, where they made all-time high and also had seen some deep contraction, volatility and weakness, but luckily survived all the worrying factors that were threatening to pull them down and are poised to create new highs in 2014," said Veracity Broking Services' head of research, Jignesh Chaudhary.
"In 2014, markets will be guided by the outcome of the Lok Sabha election results and positive economic reforms to be introduced by the government to aid growth...expect Sensex to hover in the range of 18,000 to 22,500 levels and Nifty to be between 5,200 and 6,750 levels," he added.
Among BSE sectoral indices, IT shot up by 59.25 per cent, followed by teck (46.88 per cent), healthcare (21.80 per cent), FMCG (9.70 per ce nt), auto (8.15 per cent) and oil & gas (3.07 per cent).
Laggards include realty (down 33.38 per cent), consumer durables (26.33 per cent), power (16.44 per cent), metal (11.66 per cent), banking (10.02 per cent) and capital goods (7.55 per cent).
Auto, IT, healthcare, teck and banking indices logged their all-time highs while real estate registered its historic low.
Capital goods, metal and power recorded their multi-year lows during the year.
via Business - Google News http://news.google.com/news/url?sa=t&fd=R&usg=AFQjCNF96Rc-OnSiYGggJKSkTJmG2iaMtA&url=http://profit.ndtv.com/news/market/article-year-2013-sensex-nifty-hit-new-highs-it-stocks-shine-375533
Put the internet to work for you.
0 comments:
Post a Comment